v3.25.4
Long-duration Contracts
 12 Months Ended
Dec. 31, 2025
Insurance [Abstract]  
Long-duration Contracts
11. Long-duration Contracts

Interest sensitive contract liabilities – Interest sensitive contract liabilities primarily include:
▪traditional deferred annuities;
▪indexed annuities consisting of fixed indexed, index-linked variable annuities, and assumed indexed universal life without significant mortality risk;
▪funding agreements; and
▪other investment-type contracts comprising of immediate annuities without significant mortality risk (which includes pension group annuities and structured settlements without life contingencies), guaranteed investment contracts, and assumed endowments without significant mortality risks.

The following represents a rollforward of the policyholder account balance by product within interest sensitive contract liabilities. Where explicit policyholder account balances do not exist, the disaggregated rollforward represents the recorded reserve.

Year ended December 31, 2025
(In millions, except percentages)Traditional Deferred AnnuitiesIndexed AnnuitiesFunding AgreementsOther Investment-typeTotal
Balance at December 31, 2024
$86,661 $97,861 $54,768 $8,030 $247,320 
Deposits28,796 18,407 33,700 1,069 81,972 
Policy charges(2)(795)— — (797)
Surrenders and withdrawals(9,364)(11,701)— (238)(21,303)
Benefit payments(1,386)(1,551)(7,193)(193)(10,323)
Interest credited4,513 3,093 3,210 230 11,046 
Foreign exchange(17)3 864 15 865 
Other— — 206 (92)114 
Balance at December 31, 2025$109,201 $105,317 $85,555 $8,821 $308,894 
Weighted average crediting rate4.7 %2.7 %4.6 %2.8 %
Net amount at risk$422 $17,371 $— $23 
Cash surrender value103,155 97,760 — 6,716 
Year ended December 31, 2024
(In millions, except percentages)Traditional Deferred AnnuitiesIndexed AnnuitiesFunding AgreementsOther Investment-typeTotal
Balance at December 31, 2023
$64,763 $93,147 $32,350 $7,629 $197,889 
Deposits25,459 16,230 29,249 1,088 72,026 
Policy charges(2)(709)— — (711)
Surrenders and withdrawals(5,389)(12,744)— (84)(18,217)
Benefit payments(1,108)(1,580)(8,304)(212)(11,204)
Interest credited3,256 3,524 1,707 205 8,692 
Foreign exchange(318)(7)(414)(498)(1,237)
Other— — 180 (98)82 
Balance at December 31, 2024$86,661 $97,861 $54,768 $8,030 $247,320 
Weighted average crediting rate4.3 %2.7 %4.4 %2.7 %
Net amount at risk$425 $15,441 $— $51 
Cash surrender value81,243 89,511 — 6,784 

Year ended December 31, 2023
(In millions, except percentages)Traditional Deferred AnnuitiesIndexed AnnuitiesFunding AgreementsOther Investment-typeTotal
Balance at December 31, 2022
$43,518 $92,660 $27,439 $4,722 $168,339 
Deposits30,175 12,639 6,893 4,597 54,304 
Policy charges(2)(651)— — (653)
Surrenders and withdrawals(9,929)(11,253)(110)(40)(21,332)
Benefit payments(984)(1,609)(3,273)(275)(6,141)
Interest credited1,858 1,279 883 155 4,175 
Foreign exchange52 1 260 (95)218 
Other1
75 81 258 (1,435)(1,021)
Balance at December 31, 2023$64,763 $93,147 $32,350 $7,629 $197,889 
Weighted average crediting rate4.0 %2.4 %3.4 %2.7 %
Net amount at risk$425 $14,716 $— $103 
Cash surrender value61,345 85,381 — 6,375 
1Other includes a $1,371 million reduction of reserves related to the VIAC recapture agreement. See note 18 for further information.

The following is a reconciliation of interest sensitive contract liabilities to the consolidated statements of financial condition:

December 31,
(In millions)202520242023
Traditional deferred annuities$109,201 $86,661 $64,763 
Indexed annuities105,317 97,861 93,147 
Funding agreements85,555 54,768 32,350 
Other investment-type8,821 8,030 7,629 
Reconciling items1
6,995 6,317 6,781 
Interest sensitive contract liabilities$315,889 $253,637 $204,670 
1 Reconciling items primarily include embedded derivatives in indexed annuities, unaccreted host contract adjustments on indexed annuities, negative VOBA, sales inducement liabilities, and wholly ceded universal life insurance contracts.
The following represents policyholder account balances by range of guaranteed minimum crediting rates (“GMCR”), as well as the related range of the difference between rates being credited to policyholders and the respective guaranteed minimums. Athene’s funding agreements and other investment-type products provide Athene with little to no discretionary ability to change the rates of interest payable to the respective policyholder or institution and, as a result, those policyholder account balances are excluded from the following tables.

December 31, 2025
(In millions)At Guaranteed Minimum
1 Basis Point – 100 Basis Points Above Guaranteed Minimum
Greater than 100 Basis Points Above Guaranteed Minimum
Total
Traditional deferred annuities
< 2.0%
$4,993 $1,855 $87,483 $94,331 
2.0% – < 4.0%
5,652 571 4,057 10,280 
4.0% – < 6.0%
4,585 1 1 4,587 
6.0% and greater
3 — — 3 
Total traditional deferred annuities$15,233 $2,427 $91,541 $109,201 
Indexed annuities
< 2.0%
$1,450 $1,063 $3,540 $6,053 
2.0% – < 4.0%
3,702 84 — 3,786 
Total indexed annuities with GMCR5,152 1,147 3,540 9,839 
Other1
95,478 
Total indexed annuities$105,317 
1 Includes account value allocated to an indexed strategy or other amounts without a GMCR.

December 31, 2024
(In millions)At Guaranteed Minimum
1 Basis Point – 100 Basis Points Above Guaranteed Minimum
Greater than 100 Basis Points Above Guaranteed Minimum
Total
Traditional deferred annuities
< 2.0%
$4,502 $1,766 $68,104 $74,372 
2.0% – < 4.0%
6,667 417 1,744 8,828 
4.0% – < 6.0%
3,449 8 1 3,458 
6.0% and greater
3 — — 3 
Total traditional deferred annuities$14,621 $2,191 $69,849 $86,661 
Indexed annuities
< 2.0%
$1,782 $1,258 $3,082 $6,122 
2.0% – < 4.0%
4,411 79 158 4,648 
Total indexed annuities with GMCR6,193 1,337 3,240 10,770 
Other1
87,091 
Total indexed annuities$97,861 
1 Includes account value allocated to an indexed strategy or other amounts without a GMCR.
Note: The amounts presented in this table have been revised to conform with the current year presentation to provide certain product-level detail and account value allocated to an indexed strategy or other amounts without a GMCR.
December 31, 2023
(In millions)At Guaranteed Minimum
1 Basis Point – 100 Basis Points Above Guaranteed Minimum
Greater than 100 Basis Points Above Guaranteed Minimum
Total
Traditional deferred annuities
< 2.0%
$3,755 $3,483 $44,941 $52,179 
2.0% – < 4.0%
7,753 463 879 9,095 
4.0% – < 6.0%
3,477 9 1 3,487 
6.0% and greater
2 — — 2 
Total traditional deferred annuities$14,987 $3,955 $45,821 $64,763 
Indexed annuities
< 2.0%
$2,456 $1,615 $2,718 $6,789 
2.0% – < 4.0%
5,388 20 — 5,408 
Total indexed annuities with GMCR7,844 1,635 2,718 12,197 
Other1
80,950 
Total indexed annuities$93,147 
1 Includes account value allocated to an indexed strategy or other amounts without a GMCR.
Note: The amounts presented in this table have been revised to conform with the current year presentation to provide certain product-level detail and account value allocated to an indexed strategy or other amounts without a GMCR.
Future policy benefits – Future policy benefits consist primarily of payout annuities, including single premium immediate annuities with life contingencies (which include pension group annuities and structured settlements with life contingencies), and whole life insurance contracts.

The following is a rollforward by product within future policy benefits:
Year ended December 31, 2025
(In millions, except percentages and years)Payout Annuities with Life ContingenciesWhole LifeTotal
Present value of expected net premiums
Beginning balance, present value of expected net premiums$— $880 $880 
Effect of changes in discount rate assumptions— (30)(30)
Effect of foreign exchange on the change in discount rate assumptions— 2 2 
Beginning balance at original discount rate— 852 852 
Effect of changes in cash flow assumptions— 54 54 
Effect of actual to expected experience— (13)(13)
Adjusted balance— 893 893 
Issuances— 647 647 
Interest accrual— 26 26 
Net premium collected— (207)(207)
Foreign exchange— 9 9 
Other— 10 10 
Ending balance at original discount rate— 1,378 1,378 
Effect of changes in discount rate assumptions— 25 25 
Effect of foreign exchange on the change in discount rate assumptions— (1)(1)
Ending balance, present value of expected net premiums$— $1,402 $1,402 
Present value of expected future policy benefits
Beginning balance, present value of expected future policy benefits$42,261 $2,711 $44,972 
Effect of changes in discount rate assumptions7,378 206 7,584 
Effect of foreign exchange on the change in discount rate assumptions(5)(1)(6)
Beginning balance at original discount rate49,634 2,916 52,550 
Effect of changes in cash flow assumptions(53)184 131 
Effect of actual to expected experience(88)(45)(133)
Adjusted balance49,493 3,055 52,548 
Issuances1,150 1,759 2,909 
Interest accrual1,734 90 1,824 
Benefit payments(4,417)(138)(4,555)
Foreign exchange60 7 67 
Other— 11 11 
Ending balance at original discount rate48,020 4,784 52,804 
Effect of changes in discount rate assumptions(5,941)(1,036)(6,977)
Effect of foreign exchange on the change in discount rate assumptions(21)47 26 
Ending balance, present value of expected future policy benefits42,058 3,795 45,853 
Less: Present value of expected net premiums— 1,402 1,402 
Net future policy benefits$42,058 $2,393 $44,451 
Weighted-average liability duration (in years)
9.220.7
Weighted-average interest accretion rate3.7 %5.2 %
Weighted-average current discount rate5.3 %6.4 %
Expected future gross premiums, undiscounted$— $1,963 
Expected future gross premiums, discounted1
— 1,577 
Expected future benefit payments, undiscounted70,176 12,229 
1 Discounted at the original discount rate.
Year ended December 31, 2024
(In millions, except percentages and years)Payout Annuities with Life ContingenciesWhole LifeTotal
Present value of expected net premiums
Beginning balance, present value of expected net premiums$— $1,182 $1,182 
Effect of changes in discount rate assumptions— (45)(45)
Effect of foreign exchange on the change in discount rate assumptions— (2)(2)
Beginning balance at original discount rate— 1,135 1,135 
Effect of actual to expected experience— (4)(4)
Adjusted balance— 1,131 1,131 
Interest accrual— 22 22 
Net premium collected— (190)(190)
Foreign exchange— (111)(111)
Ending balance at original discount rate— 852 852 
Effect of changes in discount rate assumptions— 30 30 
Effect of foreign exchange on the change in discount rate assumptions— (2)(2)
Ending balance, present value of expected net premiums$— $880 $880 
Present value of expected future policy benefits
Beginning balance, present value of expected future policy benefits$45,001 $3,371 $48,372 
Effect of changes in discount rate assumptions6,233 (89)6,144 
Effect of foreign exchange on the change in discount rate assumptions1 (6)(5)
Beginning balance at original discount rate51,235 3,276 54,511 
Effect of changes in cash flow assumptions(104)— (104)
Effect of actual to expected experience78 (4)74 
Adjusted balance51,209 3,272 54,481 
Issuances1,115 — 1,115 
Interest accrual1,802 69 1,871 
Benefit payments(4,476)(85)(4,561)
Foreign exchange(16)(340)(356)
Ending balance at original discount rate49,634 2,916 52,550 
Effect of changes in discount rate assumptions(7,378)(206)(7,584)
Effect of foreign exchange on the change in discount rate assumptions5 1 6 
Ending balance, present value of expected future policy benefits42,261 2,711 44,972 
Less: Present value of expected net premiums— 880 880 
Net future policy benefits$42,261 $1,831 $44,092 
Weighted-average liability duration (in years)
9.430.7
Weighted-average interest accretion rate3.7 %4.8 %
Weighted-average current discount rate5.6 %4.8 %
Expected future gross premiums, undiscounted$— $1,107 
Expected future gross premiums, discounted1
— 929 
Expected future benefit payments, undiscounted72,793 10,618 
1 Discounted at the original discount rate.
Year ended December 31, 2023
(In millions, except percentages and years)Payout Annuities with Life ContingenciesWhole LifeTotal
Present value of expected net premiums
Beginning balance, present value of expected net premiums$— $— $— 
Issuances— 3,091 3,091 
Interest accrual— 6 6 
Net premium collected— (2,027)(2,027)
Foreign exchange— 65 65 
Ending balance at original discount rate— 1,135 1,135 
Effect of changes in discount rate assumptions— 45 45 
Effect of foreign exchange on the change in discount rate assumptions— 2 2 
Ending balance, present value of expected net premiums$— $1,182 $1,182 
Present value of expected future policy benefits
Beginning balance, present value of expected future policy benefits$36,422 $— $36,422 
Effect of changes in discount rate assumptions8,425 — 8,425 
Effect of foreign exchange on the change in discount rate assumptions(13)— (13)
Beginning balance at original discount rate44,834 — 44,834 
Effect of changes in cash flow assumptions(297)— (297)
Effect of actual to expected experience(67)— (67)
Adjusted balance44,470 — 44,470 
Issuances10,427 3,091 13,518 
Interest accrual1,646 18 1,664 
Benefit payments(3,834)(18)(3,852)
Foreign exchange35 185 220 
Other1
(1,509)— (1,509)
Ending balance at original discount rate51,235 3,276 54,511 
Effect of changes in discount rate assumptions(6,233)89 (6,144)
Effect of foreign exchange on the change in discount rate assumptions(1)6 5 
Ending balance, present value of expected future policy benefits45,001 3,371 48,372 
Less: Present value of expected net premiums— 1,182 1,182 
Net future policy benefits$45,001 $2,189 $47,190 
Weighted-average liability duration (in years)
9.533.5
Weighted-average interest accretion rate3.6 %4.8 %
Weighted-average current discount rate5.1 %4.1 %
Expected future gross premiums, undiscounted$— $1,497 
Expected future gross premiums, discounted2
— 1,239 
Expected future benefit payments, undiscounted75,261 11,344 
1 Other includes a $1,509 million reduction of reserves related to the VIAC recapture agreement. See note 18 for further information.
2 Discounted at the original discount rate.
The following is a reconciliation of future policy benefits to the consolidated statements of financial condition:

December 31,
(In millions)202520242023
Payout annuities with life contingencies$42,058 $42,261 $45,001 
Whole life2,393 1,831 2,189 
Reconciling items1
5,813 5,810 6,097 
Future policy benefits$50,264 $49,902 $53,287 
1 Reconciling items primarily include the deferred profit liability and negative VOBA associated with the liability for future policy benefits. Additionally, it includes term life reserves, fully ceded whole life reserves, and reserves for immaterial lines of business including accident and health and disability, as well as other insurance benefit reserves for no-lapse guarantees with universal life contracts, all of which are fully ceded.

The following is a reconciliation of premiums and interest expense relating to future policy benefits to the consolidated statements of operations:

Premiums
Years ended December 31,
(In millions)202520242023
Payout annuities with life contingencies$1,047 $1,085 $10,504 
Whole life1,559 204 2,214 
Reconciling items1
22 29 31 
Total premiums$2,628 $1,318 $12,749 
Interest Expense
Years ended December 31,
(In millions)202520242023
Payout annuities with life contingencies$1,735 $1,802 $1,646 
Whole life64 47 12 
Total interest expense
$1,799 $1,849 $1,658 
1 Reconciling items primarily relate to immaterial lines of business including term life, fully ceded whole life, and accident and health and disability.

Significant assumptions and inputs to the calculation of future policy benefits for payout annuities with life contingencies include policyholder demographic data, assumptions for policyholder longevity and policyholder utilization for contracts with deferred lives, and discount rates. For whole life products, significant assumptions and inputs include policyholder demographic data, assumptions for mortality, morbidity, and lapse and discount rates.

Athene bases certain key assumptions related to policyholder behavior on industry standard data adjusted to align with actual company experience, if necessary. At least annually, Athene reviews all significant cash flow assumptions and updates as necessary, unless emerging experience indicates a more frequent review is necessary. The discount rate reflects market observable inputs from upper-medium grade fixed income instrument yields and is interpolated, where necessary, to conform to the duration of Athene’s liabilities.

During the year ended December 31, 2025, the present value of expected future policy benefits increased by $881 million, which was driven by $2,909 million of issuances, $1,824 million of interest accrual, a $612 million change in discount rate assumptions related to a decrease in market observable rates and a $67 million change in foreign exchange, partially offset by $4,555 million of benefit payments.

During the year ended December 31, 2024, the present value of expected future policy benefits decreased by $3,400 million, which was driven by $4,561 million of benefit payments, a $1,440 million change in discount rate assumptions due to an increase in rates, and a $356 million change in foreign exchange, partially offset by $1,871 million of interest accrual and $1,115 million of issuances, primarily pension group annuities.
During the year ended December 31, 2023, the present value of expected future policy benefits increased by $11,950 million, which was driven by $13,518 million of issuances, primarily pension group annuities, a $2,236 million change in discount rate assumptions related to a decrease in rates, and $1,664 million of interest accrual, partially offset by $3,852 million of benefit payments, a $1,509 million reduction in reserve related to recapture, and $297 million related to the effect of changes in cash flow assumptions.

The following is a summary of remeasurement gains (losses) included within future policy and other policy benefits on the consolidated statements of operations:

Years ended December 31,
(In millions)202520242023
Reserves$43 $25 $364 
Deferred profit liability(54)(48)(246)
Negative VOBA35 39 (65)
Total remeasurement gains (losses)$24 $16 $53 

During the years ended December 31, 2025, 2024 and 2023, Athene recorded reserve increases of $73 million, $15 million and $136 million, respectively, on the consolidated statements of operations as a result of the present value of benefits and expenses exceeding the present value of gross premiums.

Market risk benefits – Athene issues and reinsures traditional deferred and indexed annuity products that contain GLWB and GMDB riders that meet the criteria to be classified as market risk benefits.

The following is a rollforward of net market risk benefit liabilities by product:

Year ended December 31, 2025
(In millions, except years)Traditional Deferred AnnuitiesIndexed AnnuitiesTotal
Balance at December 31, 2024
$190 $3,525 $3,715 
Effect of changes in instrument-specific credit risk(3)(154)(157)
Balance, beginning of period, before changes in instrument-specific credit risk187 3,371 3,558 
Issuances— 429 429 
Interest accrual9 182 191 
Attributed fees collected2 394 396 
Benefit payments(4)(66)(70)
Effect of changes in interest rates5 2 7 
Effect of changes in equity— (112)(112)
Effect of actual policyholder behavior compared to expected behavior3 109 112 
Effect of changes in future expected policyholder behavior(5)(38)(43)
Effect of changes in other future expected assumptions3 (15)(12)
Balance, end of period, before changes in instrument-specific credit risk200 4,256 4,456 
Effect of changes in instrument-specific credit risk5 255 260 
Balance at December 31, 2025
205 4,511 4,716 
Less: Reinsurance recoverable— 73 73 
Balance at December 31, 2025, net of reinsurance
$205 $4,438 $4,643 
Net amount at risk$422 $17,371 
Weighted-average attained age of contract holders (in years)
7669
Year ended December 31, 2024
(In millions, except years)Traditional Deferred AnnuitiesIndexed AnnuitiesTotal
Balance at December 31, 2023
$192 $3,181 $3,373 
Effect of changes in instrument-specific credit risk2 (10)(8)
Balance, beginning of period, before changes in instrument-specific credit risk194 3,171 3,365 
Issuances— 295 295 
Interest accrual10 191 201 
Attributed fees collected2 358 360 
Benefit payments(4)(52)(56)
Effect of changes in interest rates(18)(640)(658)
Effect of changes in equity— (94)(94)
Effect of actual policyholder behavior compared to expected behavior6 73 79 
Effect of changes in future expected policyholder behavior(3)88 85 
Effect of changes in other future expected assumptions— (19)(19)
Balance, end of period, before changes in instrument-specific credit risk187 3,371 3,558 
Effect of changes in instrument-specific credit risk3 154 157 
Balance at December 31, 2024
190 3,525 3,715 
Less: Reinsurance recoverable— 37 37 
Balance at December 31, 2024, net of reinsurance
$190 $3,488 $3,678 
Net amount at risk$425 $15,441 
Weighted-average attained age of contract holders (in years)
7669


Year ended December 31, 2023
(In millions, except years)Traditional Deferred AnnuitiesIndexed AnnuitiesTotal
Balance at December 31, 2022
$170 $2,319 $2,489 
Effect of changes in instrument-specific credit risk13 353 366 
Balance, beginning of period, before changes in instrument-specific credit risk183 2,672 2,855 
Issuances— 106 106 
Interest accrual10 147 157 
Attributed fees collected2 336 338 
Benefit payments(2)(32)(34)
Effect of changes in interest rates(1)(90)(91)
Effect of changes in equity— (119)(119)
Effect of actual policyholder behavior compared to expected behavior5 67 72 
Effect of changes in future expected policyholder behavior(3)78 75 
Effect of changes in other future expected assumptions— 6 6 
Balance, end of period, before changes in instrument-specific credit risk194 3,171 3,365 
Effect of changes in instrument-specific credit risk(2)10 8 
Balance at December 31, 2023
$192 $3,181 $3,373 
Net amount at risk$425 $14,716 
Weighted-average attained age of contract holders (in years)
7569
The following is a reconciliation of market risk benefits to the consolidated statements of financial condition. Market risk benefit assets are included in other assets on the consolidated statements of financial condition.

December 31, 2025
(In millions)AssetLiabilityNet Liability
Traditional deferred annuities$— $205 $205 
Indexed annuities214 4,725 4,511 
Total$214 $4,930 $4,716 
December 31, 2024
(In millions)AssetLiabilityNet Liability
Traditional deferred annuities$— $190 $190 
Indexed annuities313 3,838 3,525 
Total$313 $4,028 $3,715 
December 31, 2023
(In millions)AssetLiabilityNet Liability
Traditional deferred annuities$— $192 $192 
Indexed annuities378 3,559 3,181 
Total$378 $3,751 $3,373 

During the year ended December 31, 2025, net market risk benefit liabilities increased by $1,001 million, which was primarily driven by $429 million of issuances, $396 million in fees collected from policyholders, $191 million of interest accrual, and a $103 million change in instrument-specific credit risk related to tightening of credit spreads, partially offset by a decrease of $112 million related to equity market performance, $70 million of benefit payments and a decrease of $43 million related to the effect of changes in future expected policyholder behavior.

During the year ended December 31, 2024, net market risk benefit liabilities increased by $342 million, which was primarily driven by $360 million in fees collected from policyholders, issuances of $295 million, $201 million of interest accrual, and a $149 million change in instrument-specific credit risk related to tightening of credit spreads, partially offset by a decrease of $658 million related to changes in the risk-free discount rate across the curve.

During the year ended December 31, 2023, net market risk benefit liabilities increased by $884 million, which was primarily driven by $338 million in fees collected from policyholders, a $374 million change in instrument-specific credit risk related to tightening of credit spreads, $157 million of interest accrual, and issuances of $106 million, partially offset by $119 million of changes related to equity market performance and a decrease of $91 million related to changes in the risk-free discount rate across the curve.

The determination of the fair value of market risk benefits requires the use of inputs related to fees and assessments and assumptions in determining the projected benefits in excess of the projected account balance. Judgment is required for both economic and actuarial assumptions, which can be either observable or unobservable, that impact future policyholder account growth.

Economic assumptions include interest rates and implied volatilities throughout the duration of the liability. For indexed annuities, assumptions also include projected equity returns which impact cash flows attributable to indexed strategies, implied equity volatilities, expected index credits on the next policy anniversary date and future equity option costs. Assumptions related to the level of option budgets used for determining the future equity option costs and the impact on future policyholder account value growth are considered unobservable inputs.

Policyholder behavior assumptions are unobservable inputs and are established using accepted actuarial valuation methods to estimate withdrawals (surrender rate) and income rider utilization. Assumptions are generally based on industry data and pricing assumptions which are updated for actual experience, if necessary. Actual experience may be limited for recently issued products.
All inputs are used to project excess benefits and fees over a range of risk-neutral, stochastic interest rate scenarios. For indexed annuities, stochastic equity return scenarios are also included within the range. A risk margin is incorporated within the discount rate to reflect uncertainty in the projected cash flows such as variations in policyholder behavior, as well as a credit spread to reflect nonperformance risk, which is considered an unobservable input. Athene uses its public credit rating relative to the U.S. Treasury curve as of the valuation date to reflect its nonperformance risk in the fair value estimate of market risk benefits.

The following summarizes the unobservable inputs for market risk benefits:

December 31, 2025
(In millions, except percentages)Fair ValueValuation TechniqueUnobservable InputsMinimumMaximumWeighted AverageImpact of an Increase in the Input on Fair Value
Market risk benefits, net$4,716 Discounted cash flowNonperformance risk0.4 %1.0 %0.9 %
1
Decrease
Option budget0.5 %5.9 %2.6 %
2
Decrease
Surrender rate3.8 %7.9 %5.2 %
2
Decrease
Utilization rate28.6 %95.0 %86.3 %
3
Increase
December 31, 2024
(In millions, except percentages)Fair ValueValuation TechniqueUnobservable InputsMinimumMaximumWeighted AverageImpact of an Increase in the Input on Fair Value
Market risk benefits, net$3,715 Discounted cash flowNonperformance risk0.4 %1.1 %1.0 %
1
Decrease
Option budget0.5 %6.0 %2.3 %
2
Decrease
Surrender rate3.3 %7.2 %4.6 %
2
Decrease
Utilization rate28.6 %95.0 %84.9 %
3
Increase
December 31, 2023
(In millions, except percentages)Fair ValueValuation TechniqueUnobservable InputsMinimumMaximumWeighted AverageImpact of an Increase in the Input on Fair Value
Market risk benefits, net$3,373 Discounted cash flowNonperformance risk0.4 %1.4 %1.2 %
1
Decrease
Option budget0.5 %6.0 %1.9 %
2
Decrease
Surrender rate3.2 %6.4 %4.5 %
2
Decrease
Utilization rate28.6 %95.0 %83.6 %
3
Increase
1 The nonperformance risk weighted average is based on the cash flows underlying the market risk benefit reserve.
2 The option budget and surrender rate weighted averages are calculated based on projected account values.
3 The utilization of GLWB withdrawals represents the estimated percentage of policyholders that are expected to use their income rider over the duration of the contract, with the weighted average based on current account values.