Income Taxes (Tables)

12 Months Ended

Dec. 31, 2025

Schedule of Provision (Benefit) for Income Taxes

The provision (benefit) for income taxes is presented in the following table:


	Years ended December 31,
(In millions)	2025		2024		2023
Current
Federal income tax1	$	474	$	1,083	$	809
Foreign income tax2	86		23		104
State and local income tax	73		55		64
	$	633	$	1,161	$	977
Deferred
Federal income tax1	349		(77)		331
Foreign income tax2	274		(30)		(2,239)
State and local income tax	20		8		8
	643		(99)		(1,900)
Total Income Tax Provision (Benefit)	$	1,276	$	1,062	$	(923)

1 For the years ended December 31, 2025, 2024 and 2023, income tax provision (benefit) includes proportional amortization of $513 million, $56 million and $49 million, respectively; tax credits of $(743) million, $(367) million and $(186) million, respectively; and transaction costs relating to low-income housing and transferable energy tax credits of $225 million, $248 million and $103 million, respectively.
2 The foreign income tax provision (benefit) was calculated on $7,656 million, $2,393 million and $2,600 million of pre-tax income (loss) generated in foreign jurisdictions for the years ended December 31, 2025, 2024 and 2023, respectively.

The income tax provision (benefit) is presented in the following table:


	Years ended December 31,
(In millions)	2025		2024		2023
Income tax provision (benefit)	$	1,276	$	1,062	$	(923)
Income tax provision (benefit) from other comprehensive income (loss)	835		21		513
Total income tax provision (benefit)	$	2,111	$	1,083	$	(410)

Schedule of Reconciliation of Statutory Tax Rate to Effective Income Tax Rate

A reconciliation of the U.S. federal statutory income tax rate to our effective tax rate for the year ended December 31, 2025 is as follows:


	Year ended December 31,
	2025
(In millions, except percentages)	Amount		Percentage
U.S. federal statutory tax rate	$	1,401	21.0	%
State and local income taxes, net of federal income tax effect1	78		1.2
State and local income taxes, net of federal income tax effect	10		0.2
Change in valuation allowance	68		1.0
Foreign tax effects	(1,272)		(19.1)
Bermuda
Statutory tax rate difference between Bermuda and U.S.	(441)		(6.6)
Income passed through to non-controlling interests	(105)		(1.6)
Anticipatory foreign tax credit	(99)		(1.5)
Bermuda foreign tax credit	(664)		(10.0)
Other foreign jurisdictions	37		0.6

Effect of cross-border tax laws	1,062		15.9
Subpart F income	415		6.2
U.S. tax on foreign insurance 953(d) income	730		11.0

Other	(83)		(1.3)
Tax credits	(25)		(0.4)
Changes in valuation allowances	77		1.2
Nontaxable or nondeductible items	(58)		(0.9)

Impact of equity-based compensation	(70)		(1.1)
Nondeductible executive compensation	58		0.9
Insurance company owned life insurance	(32)		(0.5)
Other nontaxable or nondeductible items	(14)		(0.2)
Changes in unrecognized tax benefits	8		0.1
Other adjustments	5		0.1
Investment tax credits accounted for under the proportional amortization method	(40)		(0.6)
Purchase of transferable credits	(35)		(0.5)
Other	80		1.2
Effective tax rate	$	1,276	19.1	%

1 State and local income taxes in California, Illinois, Iowa, New York State and New York City made up the majority (greater than 50 percent) of the tax effect in this category.

A reconciliation of the U.S. federal statutory income tax rates to our effective tax rate for the years ended December 31, 2024 and 2023 is as follows:


	Years ended December 31,
(In percentages)	2024		2023
U.S. federal statutory tax rate	21.0	%	21.0	%
Income passed through to non-controlling interests	(3.5)		(4.6)
State and local income taxes (net of federal benefit)	0.5		1.2


Impact of foreign taxes (net of foreign tax credit)	(2.6)		(31.0)
Impact of equity-based compensation	(1.0)		1.0
Impact of valuation allowance	0.6		(1.3)
Tax Credits	(0.5)		(0.6)
Redomicile	0.1		(1.2)
Other	(0.3)		(1.0)
Effective income tax rate	14.3	%	(16.5)	%

Schedule of Cash Paid for Income Taxes, Net of Refunds

The Company’s cash paid for taxes for the year ended December 31, 2025 included in the consolidated statements of cash flows consists of the following:


	Year ended December 31,
(In millions)	2025
Federal	$	458
State and local	76
Foreign	56
Cash paid for taxes	$	590
State and local
New York State and City	$	59
Other State	17
Total State & local	$	76
Foreign
U.K.	$	36
Other foreign	20
Total Foreign	$	56

Schedule of Deferred Tax Assets and Liabilities

The Company’s deferred tax assets and liabilities in the consolidated statements of financial condition consist of the following:


	December 31,
(In millions)	2025		2024
Asset Management
Deferred Tax Assets
Depreciation and amortization	$	254	$	303
Tax credit carryforwards	14		167
Deferred revenue	7		9
Equity-based compensation	274		166
Net operating loss carryforwards	40		23
Other	40		47
Total Deferred Tax Assets	629		715
Valuation Allowance	(54)		(27)
Deferred Tax Assets, Net of Valuation Allowance	575		688
Deferred Tax Liabilities
Basis difference in investments	317		252
Other	5		—
Total Deferred Tax Liabilities	322		252
Total Deferred Tax Assets, Net – Asset Management	$	253	$	436
Retirement Services
Deferred Tax Assets
Insurance liabilities	$	3,117	$	2,383

Net operating loss and tax credit carryforwards	382		206
Investments, including derivatives	749		2,331
Employee benefits	9		10
Bermuda tax	1,714		1,959
Investment in foreign subsidiaries	480		552

Other	19		—
Total Deferred Tax Assets	6,470		7,441
Valuation Allowance	(197)		(48)
Deferred Tax Assets, Net of Valuation Allowance	6,273		7,393
Deferred Tax Liabilities
Intangible assets	338		362


DAC, DSI and VOBA	1,322		1,120
Other	—		10
Total Deferred Tax Liabilities	1,660		1,492
Total Deferred Tax Assets, Net – Retirement Services	$	4,613	$	5,901

Schedule of Net Operating Losses and Tax Credit Carryforwards

The net operating loss and tax credit carryforwards consist of the following:


	December 31, 2025
	Amount (in millions)		Expiration Year1
U.S. Federal net operating losses	$	711	2026
U.S. foreign tax credit	49		2033
U.S. general business credits	66		2045
U.S. corporate alternative minimum tax credits	4		No expiration
U.S. State net operating losses	284		2031
U.K. net operating losses	286		No expiration
Bermuda net operating losses	5,936		No expiration

1 Represents the year that operating losses and credits begin to expire.

Schedule of Valuation Allowance

The valuation allowance consists of the following:


	December 31,
(In millions)	2025		2024
U.S. federal and state net operating losses and other deferred tax assets	$	180	$	30
U.K. net operating losses and other deferred tax assets	71		45
Total Valuation Allowance	$	251	$	75

Schedule of Roll-Forward of Beginning and Ending Aggregate Unrecognized Tax Benefits

The following table presents a roll-forward of the beginning and ending aggregate unrecognized tax benefits for the periods presented:


	Years ended December 31,
(In millions)	2025		2024		2023
Balance at beginning of period	$	10	$	19	$	15

Increases based on tax positions taken in the prior years	5		8		4

Decreases due to settlements with tax authorities	(7)		(17)		—

Balance at end of period	$	8	$	10	$	19