# EDGAR Filing Document

**Accession Number:** 0000881453
**File Stem:** 0000881453-25-000023
**Filing Date:** 2025-8
**Character Count:** 207964
**Document Hash:** caf7d3e8343c5699c300b9611bbc08d8
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0000881453-25-000023.hdr.sgml**: 20250807

**ACCESSION NUMBER**: 0000881453-25-000023

**CONFORMED SUBMISSION TYPE**: 10-Q

**PUBLIC DOCUMENT COUNT**: 69

**CONFORMED PERIOD OF REPORT**: 20250630

**FILED AS OF DATE**: 20250807

**DATE AS OF CHANGE**: 20250807

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** FORTITUDE LIFE INSURANCE & ANNUITY CO
- **CENTRAL INDEX KEY:** 0000881453
- **STANDARD INDUSTRIAL CLASSIFICATION:** INSURANCE CARRIERS, NEC [6399]
- **ORGANIZATION NAME:** 02 Finance
- **EIN:** 061241288
- **STATE OF INCORPORATION:** AZ
- **FISCAL YEAR END:** 1231

**FILING VALUES:**
- **FORM TYPE:** 10-Q
- **SEC ACT:** 1934 Act
- **SEC FILE NUMBER:** 033-44202
- **FILM NUMBER:** 251194923

**BUSINESS ADDRESS:**
- **STREET 1:** TEN EXCHANGE PLACE
- **STREET 2:** SUITE 2210
- **CITY:** JERSEY CITY
- **STATE:** NJ
- **ZIP:** 07302
- **BUSINESS PHONE:** 6159818801

**MAIL ADDRESS:**
- **STREET 1:** TEN EXCHANGE PLACE
- **STREET 2:** SUITE 2210
- **CITY:** JERSEY CITY
- **STATE:** NJ
- **ZIP:** 07302

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** PRUDENTIAL ANNUITIES LIFE ASSURANCE CORP/CT
- **DATE OF NAME CHANGE:** 20080102

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** AMERICAN SKANDIA LIFE ASSURANCE CORP/CT
- **DATE OF NAME CHANGE:** 19920929

?xml version='1.0' encoding='ASCII'? fliac-20250630

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

**UNITED STATES**

**SECURITIES AND EXCHANGE COMMISSION**

**Washington, D.C. 20549**

_________________________________________________

**FORM 10-Q** 

_________________________________________________

☒ **QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934**

**For the quarterly period ended June 30, 2025** 

**OR**

☐ **TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934**

**For the Transition Period from&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; to &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**

**Commission File Number 033-44202** 

_________________________________________________________________

**Fortitude Life Insurance & Annuity Company**

(Exact Name of Registrant as Specified in its Charter)

---

| | |
|:---|:---|
| **Arizona** | **06-1241288** |
| **(State or Other Jurisdiction of<br>Incorporation or Organization)** | **(I.R.S. Employer Identification Number)** |

---

**Ten Exchange Place**

**Suite 2210**

**Jersey City, NJ 07302**

**(615) 981-8801** 

(Address and Telephone Number of Registrant's Principal Executive Offices)

**SECURITIES REGISTERED PURSUANT TO SECTION 12(b) OF THE ACT:**

---

| | | |
|:---|:---|:---|
| **<u>Title of Each Class</u>** | **<u>Trading Symbol(s)</u>** | **<u>Name of Each Exchange on Which Registered</u>** |
| Not Applicable | Not Applicable | Not Applicable |

---

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**&nbsp;&nbsp;&nbsp;&nbsp;** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.&nbsp;&nbsp;&nbsp;&nbsp;Yes ☒&nbsp;&nbsp;&nbsp;&nbsp;No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of the Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).&nbsp;&nbsp;&nbsp;&nbsp;Yes ☒&nbsp;&nbsp;&nbsp;&nbsp;No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See definitions of "large accelerated filer", "accelerated filer", "smaller reporting company" and "emerging growth company" in Rule 12b-2 of the Exchange Act.

---

| | | | |
|:---|:---|:---|:---|
| Large Accelerated Filer | ☐ | Accelerated Filer | ☐ |
| Non-accelerated Filer | ☒ | Smaller Reporting Company | ☐ |
| | | Emerging Growth Company | ☐ |

---

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).&nbsp;&nbsp;&nbsp;&nbsp;Yes ☐&nbsp;&nbsp;&nbsp;&nbsp;No ☒

As of August 7, 2025, 25,000 shares of the registrant's Common Stock (par value $100) consisting of 100 voting shares and 24,900 non-voting shares were outstanding. As of such date, Fortitude Group Holdings, LLC, a Delaware limited liability company, owned all of the registrant's Common Stock.

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**&nbsp;&nbsp;&nbsp;&nbsp;** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

**TABLE OF CONTENTS**

---

| | | |
|:---|:---|:---|
| | | **Page** |
| **[PART I - FINANCIAL INFORMATION](#i21731b18eb5542d2b57e39e6ba9ccb3d_13)** | **[PART I - FINANCIAL INFORMATION](#i21731b18eb5542d2b57e39e6ba9ccb3d_13)** | |
| Item 1. | [Financial Statements:](#i21731b18eb5542d2b57e39e6ba9ccb3d_16) |  |
|  | <u>[Unaudited Interim Consolidated Statements of Financial Position as of June 30, 2025 and December 31, 2024](#i21731b18eb5542d2b57e39e6ba9ccb3d_19)</u> | [5](#i21731b18eb5542d2b57e39e6ba9ccb3d_19) |
|  | <u>[Unaudited Interim Consolidated Statements of Operations and Comprehensive Income for the three and six months ended June 30, 2025 and 2024](#i21731b18eb5542d2b57e39e6ba9ccb3d_25)</u> | [6](#i21731b18eb5542d2b57e39e6ba9ccb3d_25) |
|  | <u>[Unaudited Interim Consolidated Statements of Equity for the three and six months ended June 30, 2025 and 2024](#i21731b18eb5542d2b57e39e6ba9ccb3d_28)</u> | [7](#i21731b18eb5542d2b57e39e6ba9ccb3d_28) |
|  | <u>[Unaudited Interim Consolidated Statements of Cash Flows for the six months ended June 30, 2025 and 2024](#i21731b18eb5542d2b57e39e6ba9ccb3d_31)</u> | [8](#i21731b18eb5542d2b57e39e6ba9ccb3d_31) |
|  | [Notes to Unaudited Interim Consolidated Financial Statements](#i21731b18eb5542d2b57e39e6ba9ccb3d_34) | [9](#i21731b18eb5542d2b57e39e6ba9ccb3d_34) |
|  | &nbsp;&nbsp;&nbsp;&nbsp;[1. Business and Basis of Presentation](#i21731b18eb5542d2b57e39e6ba9ccb3d_37) | [9](#i21731b18eb5542d2b57e39e6ba9ccb3d_37) |
|  | &nbsp;&nbsp;&nbsp;&nbsp;[2. Significant Accounting Policies and Pronouncements](#i21731b18eb5542d2b57e39e6ba9ccb3d_40) | [9](#i21731b18eb5542d2b57e39e6ba9ccb3d_40) |
|  | &nbsp;&nbsp;&nbsp;&nbsp;[3. Segment Information](#i21731b18eb5542d2b57e39e6ba9ccb3d_43) | [10](#i21731b18eb5542d2b57e39e6ba9ccb3d_43) |
|  | &nbsp;&nbsp;&nbsp;&nbsp;[4. Fair Value of Assets and Liabilities](#i21731b18eb5542d2b57e39e6ba9ccb3d_46) | [14](#i21731b18eb5542d2b57e39e6ba9ccb3d_46) |
|  | &nbsp;&nbsp;&nbsp;&nbsp;[5. Investments](#i21731b18eb5542d2b57e39e6ba9ccb3d_49) | [30](#i21731b18eb5542d2b57e39e6ba9ccb3d_49) |
|  | &nbsp;&nbsp;&nbsp;&nbsp;[6. Derivatives, Hedging](#i21731b18eb5542d2b57e39e6ba9ccb3d_52)[and Offsetting](#i21731b18eb5542d2b57e39e6ba9ccb3d_52) | [33](#i21731b18eb5542d2b57e39e6ba9ccb3d_52) |
|  | &nbsp;&nbsp;&nbsp;&nbsp;[7. Income Taxes](#i21731b18eb5542d2b57e39e6ba9ccb3d_55) | [37](#i21731b18eb5542d2b57e39e6ba9ccb3d_55) |
|  | &nbsp;&nbsp;&nbsp;&nbsp;[8. Equity](#i21731b18eb5542d2b57e39e6ba9ccb3d_58) | [38](#i21731b18eb5542d2b57e39e6ba9ccb3d_58) |
|  | &nbsp;&nbsp;&nbsp;&nbsp;[9. Commitments and Contingent Liabilities](#i21731b18eb5542d2b57e39e6ba9ccb3d_61) | [38](#i21731b18eb5542d2b57e39e6ba9ccb3d_61) |
|  | &nbsp;&nbsp;&nbsp;&nbsp;[10. Related Party Transactions](#i21731b18eb5542d2b57e39e6ba9ccb3d_64) | [40](#i21731b18eb5542d2b57e39e6ba9ccb3d_64) |
|  | &nbsp;&nbsp;&nbsp;&nbsp;[11. Separate Accounts](#i21731b18eb5542d2b57e39e6ba9ccb3d_6597069767640) | [41](#i21731b18eb5542d2b57e39e6ba9ccb3d_6597069767640) |
|  | &nbsp;&nbsp;&nbsp;&nbsp;[12. Credit and Liquidity Agreements](#i21731b18eb5542d2b57e39e6ba9ccb3d_5497558139819) | [42](#i21731b18eb5542d2b57e39e6ba9ccb3d_5497558139819) |
| Item 2. | [Management's Discussion and Analysis of Financial Condition and Results of Operations](#i21731b18eb5542d2b57e39e6ba9ccb3d_67) | [43](#i21731b18eb5542d2b57e39e6ba9ccb3d_67) |
| Item 3. | [Quantitative and Qualitative Disclosures About Market Risk](#i21731b18eb5542d2b57e39e6ba9ccb3d_91) | [51](#i21731b18eb5542d2b57e39e6ba9ccb3d_91) |
| Item 4. | [Controls and Procedures](#i21731b18eb5542d2b57e39e6ba9ccb3d_94) | [52](#i21731b18eb5542d2b57e39e6ba9ccb3d_94) |
| **[PART II - OTHER INFORMATION](#i21731b18eb5542d2b57e39e6ba9ccb3d_97)** | **[PART II - OTHER INFORMATION](#i21731b18eb5542d2b57e39e6ba9ccb3d_97)** | [52](#i21731b18eb5542d2b57e39e6ba9ccb3d_97) |
| Item 1. | [Legal Proceedings](#i21731b18eb5542d2b57e39e6ba9ccb3d_100) | [52](#i21731b18eb5542d2b57e39e6ba9ccb3d_100) |
| Item 1A. | [Risk Factors](#i21731b18eb5542d2b57e39e6ba9ccb3d_103) | [52](#i21731b18eb5542d2b57e39e6ba9ccb3d_103) |
| Item 6. | [Exhibits](#i21731b18eb5542d2b57e39e6ba9ccb3d_109) | [53](#i21731b18eb5542d2b57e39e6ba9ccb3d_109) |
| **[SIGNATURES](#i21731b18eb5542d2b57e39e6ba9ccb3d_112)** | **[SIGNATURES](#i21731b18eb5542d2b57e39e6ba9ccb3d_112)** | [54](#i21731b18eb5542d2b57e39e6ba9ccb3d_112) |

---

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**&nbsp;&nbsp;&nbsp;&nbsp;** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

**FORWARD-LOOKING STATEMENTS** 

Certain of the statements included in this Quarterly Report on Form 10-Q constitute forward-looking statements within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. Words such as "expects," "believes," "anticipates," "includes," "plans," "assumes," "estimates," "projects," "intends," "should," "will," "shall" or variations of such words are generally part of forward-looking statements. Forward-looking statements are made based on management's current expectations and beliefs concerning future developments and their potential effects upon Fortitude Life Insurance & Annuity Company (FLIAC). There can be no assurance that future developments affecting FLIAC will be those anticipated by management. These forward-looking statements are not a guarantee of future performance and involve risks and uncertainties, and there are certain important factors that could cause actual results to differ, possibly materially, from expectations or estimates reflected in such forward-looking statements, including, among others: (1) the ongoing impact of the uncertain and evolving economic environment on the global economy, financial markets and our business; (2) losses on investments or financial contracts due to deterioration in credit quality or value, or counterparty default; (3) losses on insurance products due to mortality experience or policyholder behavior experience that differs significantly from our expectations when we price our products; (4) changes in interest rates and equity prices that may (a) adversely impact the profitability of our products, the value of separate accounts supporting these products or the value of assets we manage, (b) result in losses on derivatives we use to hedge risk or increase collateral posting requirements and (c) limit opportunities to invest at appropriate returns; (5) guarantees within certain of our products which are market sensitive and may decrease our earnings or increase the volatility of our results of operations or financial position; (6) liquidity needs resulting from (a) derivative collateral market exposure, (b) asset/liability mismatches, (c) the lack of available funding in the financial markets or (d) unexpected cash demands due to severe mortality calamity or lapse events; (7) financial or customer losses, or regulatory and legal actions, due to inadequate or failed processes or systems, external events, human error or misconduct, and the use of generative artificial intelligence by either us or third-parties such as (a) disruption of our systems and data, (b) an information security breach, (c) a failure to protect the privacy of sensitive data, (d) reliance on third-parties or (e) labor and employment matters; (8) changes in the regulatory landscape, including related to (a) financial sector regulatory reform, (b) changes in tax laws, (c) fiduciary rules and other standards of care, (d) state insurance laws and developments regarding group-wide supervision, capital and reserves, or (e) privacy and cybersecurity regulation; (9) technological changes which may adversely impact companies in our investment portfolio or cause insurance experience to deviate from our assumptions; (10) ratings downgrades; (11) market conditions that may adversely affect the sales or persistency of our products; (12) competition; and (13) reputational damage. FLIAC does not intend, and is under no obligation, to update any particular forward-looking statement included in this document. See "Risk Factors" included in the Annual Report on Form 10-K for the year ended December 31, 2024 for discussion of certain risks relating to our business.

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**&nbsp;&nbsp;&nbsp;&nbsp;** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

**PART I - FINANCIAL INFORMATION**

**Item 1. Financial Statements &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**

**Fortitude Life Insurance & Annuity Company**

**Unaudited Interim Consolidated Statements of Financial Position** 

 **(in millions, except share data)** 

---

| | | |
|:---|:---|:---|
| | **June 30, 2025** | **December 31, 2024** |
| **ASSETS** | | |
| Fixed maturity securities, at fair value | $5281 | $5022 |
| Mortgage loans, at fair value | 354 | 364 |
| Short-term investments |  | 8 |
| Other invested assets (includes $398 and $354 of assets measured at fair value at June 30, 2025 and December 31, 2024, respectively) | 416 | 395 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total investments | 6051 | 5789 |
| Cash and cash equivalents | 442 | 563 |
| Accrued investment income | 64 | 58 |
| Reinsurance recoverables, at fair value | 173 | 163 |
| Deposit asset, at fair value | 342 | 364 |
| Income taxes | 139 | 76 |
| Other assets (Receivables from parent and affiliates: June 30, 2025 - $50; December 31, 2024 - $10) | 208 | 69 |
| Separate account assets, at fair value | 22448 | 22857 |
| &nbsp;&nbsp;&nbsp;&nbsp;**TOTAL ASSETS** | $29867 | $29939 |
| **LIABILITIES AND EQUITY** |  |  |
| **LIABILITIES** |  |  |
| Insurance liabilities, at fair value | $4488 | $4380 |
| Net modified coinsurance payable, at fair value | 145 | 145 |
| Liabilities associated with secured borrowing arrangements | 1367 | 1200 |
| Other liabilities (Payables to parent and affiliates: June 30, 2025 - $3; December 31, 2024 - $4) | 231 | 208 |
| Separate account liabilities, at fair value | 22448 | 22857 |
| &nbsp;&nbsp;&nbsp;&nbsp;**TOTAL LIABILITIES** | 28679 | 28790 |
| **COMMITMENTS AND CONTINGENT LIABILITIES (See Note 9)** |  |  |
| **EQUITY** |  |  |
| Common stock, $100 par value; 25,000 shares authorized, issued and outstanding | 3 | 3 |
| Additional paid-in capital | 1714 | 1714 |
| Retained deficit | (511) | (518) |
| Accumulated other comprehensive loss | (18) | (50) |
| &nbsp;&nbsp;&nbsp;&nbsp;**TOTAL EQUITY** | 1188 | 1149 |
| &nbsp;&nbsp;&nbsp;&nbsp;**TOTAL LIABILITIES AND EQUITY** | $29867 | $29939 |

---

**See Notes to Unaudited Interim Consolidated Financial Statements**

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**&nbsp;&nbsp;&nbsp;&nbsp;** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

**Fortitude Life Insurance & Annuity Company**

**Unaudited Interim Consolidated Statements of Operations and Comprehensive Income**

**(in millions)**

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **June 30** | **June 30** | **June 30** | **June 30** |
| | **Three Months Ended** | **Three Months Ended** | **Six Months Ended** | **Six Months Ended** |
| | **2025** | **2024** | **2025** | **2024** |
| **REVENUES** |  |  |  |  |
| Premiums | $10 | $8 | $17 | $18 |
| Policy charges and fee income | 103 | 113 | 210 | 225 |
| Net investment income | 71 | 75 | 136 | 145 |
| Asset management and service fees | 21 | 23 | 43 | 46 |
| Other income (loss) | 1 |  | (2) | 2 |
| Investment losses, net | (235) | (147) | (63) | (468) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**TOTAL REVENUES** | (29) | 72 | 341 | (32) |
| **BENEFITS AND EXPENSES** |  |  |  |  |
| Policyholder benefits and changes in fair value of insurance liabilities | (33) | 62 | 326 | (252) |
| Commission expense | 20 | 23 | 42 | 46 |
| General, administrative and other expenses | 15 | 20 | 32 | 38 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**TOTAL BENEFITS AND EXPENSES** | 2 | 105 | 400 | (168) |
| **INCOME (LOSS) FROM OPERATIONS BEFORE INCOME TAXES** | (31) | (33) | (59) | 136 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Less: Income tax expense (benefit) | (62) | (3) | (66) | 21 |
| **NET INCOME (LOSS)** | $31 | $(30) | $7 | $115 |
| Other comprehensive income (loss), before tax: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Changes in own-credit risk related to insurance liabilities | (8) | 61 | 40 | 48 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Less: Income tax expense (benefit) related to other comprehensive income (loss) | (2) | 13 | 8 | 10 |
| Other comprehensive income (loss), net of taxes | (6) | 48 | 32 | 38 |
| **COMPREHENSIVE INCOME** | $25 | $18 | $39 | $153 |

---

**See Notes to Unaudited Interim Consolidated Financial Statements**

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**&nbsp;&nbsp;&nbsp;&nbsp;** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

**Fortitude Life Insurance & Annuity Company**

**Unaudited Interim Consolidated Statements of Equity**

**(in millions)**

&nbsp;&nbsp;&nbsp;&nbsp;

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | **Common <br>Stock** | **Additional <br>Paid-in<br>Capital** | **Retained Deficit** | **Accumulated<br>Other<br>Comprehensive Loss** | **Total Equity** |
| **Balance, December 31, 2024** | $3 | $1714 | $(518) | $(50) | $1149 |
| Comprehensive income (loss): |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net loss |  |  | (24) |  | (24) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other comprehensive income, net of tax |  |  |  | 38 | 38 |
| Total comprehensive income |  |  |  |  | 14 |
| **Balance, March 31, 2025** | $3 | $1714 | $(542) | $(12) | $1163 |
| Comprehensive income (loss): |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Net income |  |  | 31 |  | 31 |
| &nbsp;&nbsp;&nbsp;&nbsp;Other comprehensive loss, net of tax |  |  |  | (6) | (6) |
| Total comprehensive income |  |  |  |  | 25 |
| **Balance, June 30, 2025** | $3 | $1714 | $(511) | $(18) | $1188 |

---

&nbsp;&nbsp;&nbsp;&nbsp;

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | **Common <br>Stock** | **Additional <br>Paid-in<br>Capital** | **Retained Deficit** | **Accumulated<br>Other<br>Comprehensive Loss** | **Total Equity** |
| **Balance, December 31, 2023** | $3 | $1714 | $(290) | $(65) | $1362 |
| Dividend to parent |  |  | (75) |  | (75) |
| Comprehensive income (loss): |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net income |  |  | 145 |  | 145 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other comprehensive loss, net of tax |  |  |  | (10) | (10) |
| Total comprehensive income |  |  |  |  | 135 |
| **Balance, March 31, 2024** | $3 | $1714 | $(220) | $(75) | $1422 |
| Dividend to parent |  |  | (75) |  | (75) |
| Comprehensive income (loss): |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net loss |  |  | (30) |  | (30) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other comprehensive income, net of tax |  |  |  | 48 | 48 |
| Total comprehensive income |  |  |  |  | 18 |
| **Balance, June 30, 2024** | $3 | $1714 | $(325) | $(27) | $1365 |

---

**See Notes to Unaudited Interim Consolidated Financial Statements**

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**&nbsp;&nbsp;&nbsp;&nbsp;** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

**Fortitude Life Insurance & Annuity Company**

**Unaudited Interim Consolidated Statements of Cash Flows** 

**(in millions)**

---

| | | |
|:---|:---|:---|
| | **Six Months Ended June 30** | **Six Months Ended June 30** |
| | **2025** | **2024** |
| **CASH FLOWS FROM OPERATING ACTIVITIES:** |  |  |
| Net income | $7 | $115 |
| Adjustments to reconcile net income to net cash from (used in) operating activities: |  |  |
| &nbsp;&nbsp;&nbsp;Investment losses, net | 63 | 468 |
| &nbsp;&nbsp;&nbsp;Other, net | (21) | (10) |
| &nbsp;&nbsp;&nbsp;Change in: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Insurance liabilities, at fair value | 244 | (468) |
| &nbsp;&nbsp;&nbsp;&nbsp;Deposit asset, at fair value | 22 | 34 |
| &nbsp;&nbsp;&nbsp;&nbsp;Net modified coinsurance payable, at fair value |  | 50 |
| &nbsp;&nbsp;&nbsp;&nbsp;Accrued investment income | (6) | (5) |
| &nbsp;&nbsp;&nbsp;&nbsp;Income taxes | (67) | 11 |
| &nbsp;&nbsp;&nbsp;&nbsp;Reinsurance recoverables, net | (10) | 55 |
| &nbsp;&nbsp;&nbsp;&nbsp;Derivatives, net | (98) | (431) |
| &nbsp;&nbsp;&nbsp;&nbsp;Other, net | 17 | 11 |
| **Cash flows from (used in) operating activities** | 151 | (170) |
| **CASH FLOWS FROM INVESTING ACTIVITIES:** |  |  |
| Proceeds from the sale/maturity/prepayment of: |  |  |
| &nbsp;&nbsp;&nbsp;Fixed maturity securities, at fair value | 588 | 238 |
| &nbsp;&nbsp;&nbsp;Mortgage loans | 43 | 66 |
| &nbsp;&nbsp;&nbsp;Other invested assets | 5 |  |
| &nbsp;&nbsp;&nbsp;Short-term investments | 8 | 32 |
| Payments for the purchase/origination of: |  |  |
| &nbsp;&nbsp;&nbsp;Fixed maturity securities, at fair value | (794) | (620) |
| &nbsp;&nbsp;&nbsp;Mortgage loans | (35) | (7) |
| &nbsp;&nbsp;&nbsp;Other invested assets |  | (4) |
| &nbsp;&nbsp;&nbsp;Short-term investments |  | (31) |
| &nbsp;&nbsp;Other, net |  | 1 |
| Short-term loan to parent | (50) |  |
| **Cash flows used in investing activities** | (235) | (325) |
| **CASH FLOWS FROM FINANCING ACTIVITIES:** |  |  |
| Net policyholder's account withdrawals | (96) | (101) |
| Drafts outstanding | (3) | (17) |
| Secured borrowing arrangements: |  |  |
| &nbsp;&nbsp;Net proceeds related to repurchase agreements with maturities three months or less | 8 | 200 |
| &nbsp;&nbsp;Gross proceeds related to repurchase agreements with maturities greater than three months | 54 | 200 |
| &nbsp;&nbsp;Gross repayments related to repurchase agreements with maturities greater than three months |  | (200) |
| &nbsp;&nbsp;Net proceeds related to securities lending with maturities three months or less |  | 2 |
| Dividend to parent |  | (150) |
| **Cash flows used in financing activities** | (37) | (66) |
| **NET DECREASE IN CASH AND CASH EQUIVALENTS** | (121) | (561) |
| **CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD** | 563 | 940 |
| **CASH AND CASH EQUIVALENTS, END OF PERIOD** | $442 | $379 |

---

See Note 5 for non-cash disclosures regarding collateral transferred under repurchase agreements.

**See Notes to Unaudited Interim Consolidated Financial Statements**

------

[**Table of Contents**](#i21731b18eb5542d2b57e39e6ba9ccb3d_7) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

**Fortitude Life Insurance & Annuity Company**

**Notes to Unaudited Interim Consolidated Financial Statements** 

**1.&nbsp;&nbsp;&nbsp;&nbsp;BUSINESS AND BASIS OF PRESENTATION**

Fortitude Life Insurance & Annuity Company and its wholly-owned subsidiary (collectively, "FLIAC" or the "Company"), with its principal offices in Jersey City, New Jersey, is a wholly-owned subsidiary of Fortitude Group Holdings, LLC ("FGH").

***Basis of Presentation***

The Unaudited Interim Consolidated Financial Statements have been prepared in accordance with generally accepted accounting principles in the United States of America ("U.S. GAAP") on a basis consistent with reporting interim financial information in accordance with instructions to Form 10-Q and Article 10 of Regulation S-X of the Securities and Exchange Commission ("SEC"). The accompanying Unaudited Consolidated Financial Statements present the consolidated results of operations, financial condition, and cash flows of FLIAC. All intercompany transactions have been eliminated in consolidation.

In the opinion of management, all adjustments necessary for a fair statement of the financial position and results of operations have been made. All such adjustments are of a normal, recurring nature. Interim results are not necessarily indicative of the results that may be expected for the full year. These financial statements should be read in conjunction with the Company's Financial Statements included in the Company's Annual Report on Form 10-K for the year ended December 31, 2024.

***Use of Estimates***

The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.

***Revision to Previously Issued Consolidated Statements of Cash Flows***

In 2024, we identified an error that impacted our previously issued consolidated statements of cash flows for the six months ended June 30, 2024. It was determined that the gross proceeds and gross repayments related to repurchase agreements with original maturity dates greater than three months were both overstated by $100 million. These revisions resulted in offsetting changes that were contained within "Cash Flows from Financing Activities".

We assessed the materiality of the error on our prior period consolidated financial statements in accordance with SEC Staff Accounting Bulletin No. 99, Materiality, codified in Accounting Standards Codification ("ASC") 250-10, *Accounting Changes and Error Corrections*, and concluded that this error was not material to the prior period. However, we determined it was appropriate to correctly present and revise the consolidated statements of cash flows for the impacted prior period.

**2.&nbsp;&nbsp;&nbsp;&nbsp;SIGNIFICANT ACCOUNTING POLICIES AND PRONOUNCEMENTS**

***Accounting Policy Election***

*Fair Value Option* 

We have elected to apply the fair value option to certain financial instruments and insurance and reinsurance contracts that give rise to assets and liabilities. We have made this election as it improves our operational efficiency and better aligns the recognition and measurement of our investments, insurance contracts, and associated reinsurance activity with how we expect to manage the business. See Note 4 herein and Notes 2 and 4 in the Company's Annual Report on Form 10-K for the year ended December 31, 2024 for further information

***Recent Accounting Pronouncements***

Changes to U.S. GAAP are established by the Financial Accounting Standards Board ("FASB") in the form of an Accounting Standards Update ("ASU") to the Accounting Standards Codification ("ASC"). We consider the applicability and impact of all ASUs in our preparation of the financial statements. ASUs listed below include those that have been adopted during the current fiscal year and/or those that have been issued but not yet adopted as of the date of this filing. ASUs not listed below were assessed and determined to be either not applicable or not material.

------

[**Table of Contents**](#i21731b18eb5542d2b57e39e6ba9ccb3d_7)

**Fortitude Life Insurance & Annuity Company**

**Notes to Unaudited Interim Consolidated Financial Statements** 

***ASUs adopted in 2025:***

---

| | | | |
|:---|:---|:---|:---|
| **Standard** | **Description** | **Effective date and method of adoption** | **Effect on the financial statements or other significant matters** |
| ***ASU 2023-07****, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures* | This ASU improved reportable segment disclosures, primarily through enhanced disclosures regarding a company's significant segment expenses and certain other items. The update also required expanded disclosures regarding the chief operating decision maker ("CODM") and the information they are provided when assessing segment performance and allocating resources. | The Company adopted the update for interim reporting periods beginning January 1, 2025 using the retrospective method.<br>The Company adopted this update for annual disclosures on January 1, 2024 using the retrospective method. | This adoption of the update for both interim and annual periods expanded the Company's disclosures but did not have an impact on its financial position or results of operations. <br>See Note 3 herein for further information regarding the expanded interim disclosures. <br>See Note 3 within the Company's Annual Report on Form 10-K for the year ended December 31, 2024 for further information regarding the expanded annual disclosures. |

---

***ASUs issued but not yet adopted as of June 30, 2025:***

---

| | | | |
|:---|:---|:---|:---|
| **Standard** | **Description** | **Effective date and method of adoption** | **Effect on the financial statements or other significant matters** |
| ***ASU 2023-09****, Income Taxes (Topic 740): Improvements to Income Tax Disclosures* | This ASU improves income tax disclosure requirements by requiring 1. the use of consistent categories and greater disaggregation of information in the rate reconciliation and 2. income taxes paid disaggregated by jurisdiction.  | Effective for annual reporting periods beginning January 1, 2025, and is required to be applied prospectively with the option of retrospective application. Early adoption is permitted. | The update is expected to expand the Company's disclosures but will not have an impact on the Company's financial position or results of operations. |
| ***ASU 2024-03****, Income Statement - Reporting Comprehensive Income (Topic 220): Expense Disaggregation Disclosures* | This ASU requires additional disclosures regarding certain expense types included in the income statement. The requirements include disclosure of the amounts associated with 1. purchases of inventory, 2. employee compensation, 3. depreciation and 4. intangible asset amortization. These disclosures should be included in each relevant expense caption. Furthermore, entities must disclose specific expenses, gains, or losses already required under US GAAP, offer a qualitative description of amounts not separately quantified, and present the total amount of selling expenses along with a definition of these expenses in their annual reports. | Effective for annual reporting periods beginning January 1, 2027, and interim reporting periods beginning January 1, 2028, using either the prospective or retrospective method. Early adoption is permitted | The Company is currently evaluating the potential impact of this update on its financial position, results of operations, and disclosures. |

---

**3. SEGMENT INFORMATION**

FLIAC has two reportable segments, which we refer to as the "Retained Business" and the "Ceded Business".

The Retained Business consists of variable annuity products with guaranteed lifetime withdrawal benefit features as well as smaller blocks of variable annuity products with certain other living benefit and death benefit features. The Retained Business also includes variable universal life and fixed payout annuity products. The Retained Business is actively managed by FLIAC management and we retain the full economic benefits and risks.

The Ceded Business represents certain business (primarily registered index-linked annuities and fixed annuities, which includes fixed indexed and fixed deferred annuities, and other variable annuities) where 100 percent of the assets and liabilities have

------

[**Table of Contents**](#i21731b18eb5542d2b57e39e6ba9ccb3d_7)

**Fortitude Life Insurance & Annuity Company**

**Notes to Unaudited Interim Consolidated Financial Statements** 

been fully ceded to The Prudential Insurance Company of America ("Prudential Insurance") and Pruco Life Insurance Company ("Pruco Life") under existing coinsurance and modified coinsurance agreements. At June 30, 2025 and December 31, 2024, we had a gross modified coinsurance payable of $1,811 million and $1,757 million, respectively, equal to the assets held in the Ceded Business, which are included in the net modified coinsurance payable on the consolidated statements of financial position.

The following are the consolidated statements of financial position by segment:

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | **June 30, 2025** | **June 30, 2025** | **June 30, 2025** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** |
| | **Retained Business** | **Ceded Business** | **Total** | **Retained Business** | **Ceded Business** | **Total** |
| | **(in millions)** | **(in millions)** | **(in millions)** | **(in millions)** | **(in millions)** | **(in millions)** |
| **ASSETS** | | | | | | |
| Total investments | $4296 | $1755 | $6051 | $4062 | $1727 | $5789 |
| Cash and cash equivalents | 340 | 102 | 442 | 498 | 65 | 563 |
| Accrued investment income | 51 | 13 | 64 | 46 | 12 | 58 |
| Reinsurance recoverables |  | 173 | 173 |  | 163 | 163 |
| Deposit asset |  | 342 | 342 |  | 364 | 364 |
| Income taxes | 139 |  | 139 | 76 |  | 76 |
| Other assets | 208 |  | 208 | 69 |  | 69 |
| Separate account assets | 20459 | 1989 | 22448 | 20842 | 2015 | 22857 |
| &nbsp;&nbsp;&nbsp;&nbsp;**TOTAL ASSETS** | $25493 | $4374 | $29867 | $25593 | $4346 | $29939 |
| **LIABILITIES AND EQUITY** |  |  |  |  |  |  |
| **LIABILITIES** |  |  |  |  |  |  |
| Insurance liabilities | $2271 | $2217 | $4488 | $2196 | $2184 | $4380 |
| Net modified coinsurance payable |  | 145 | 145 |  | 145 | 145 |
| Liabilities associated with secured borrowing arrangements | 1367 |  | 1367 | 1200 |  | 1200 |
| Other liabilities | 208 | 23 | 231 | 206 | 2 | 208 |
| Separate account liabilities | 20459 | 1989 | 22448 | 20842 | 2015 | 22857 |
| &nbsp;&nbsp;&nbsp;&nbsp;**TOTAL LIABILITIES** | $24305 | $4374 | $28679 | $24444 | $4346 | $28790 |
| &nbsp;&nbsp;&nbsp;&nbsp;**TOTAL EQUITY** | 1188 |  | 1188 | 1149 |  | 1149 |
| &nbsp;&nbsp;&nbsp;&nbsp;**TOTAL LIABILITIES AND EQUITY** | $25493 | $4374 | $29867 | $25593 | $4346 | $29939 |

---

&nbsp;&nbsp;&nbsp;&nbsp;

------

[**Table of Contents**](#i21731b18eb5542d2b57e39e6ba9ccb3d_7)

**Fortitude Life Insurance & Annuity Company**

**Notes to Unaudited Interim Consolidated Financial Statements** 

The following is comprehensive income by segment:

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | **Three Months Ended June 30** | **Three Months Ended June 30** | **Three Months Ended June 30** | **Three Months Ended June 30** | **Three Months Ended June 30** | **Three Months Ended June 30** |
| | **2025** | **2025** | **2025** | **2024** | **2024** | **2024** |
| | **Retained Business** | **Ceded Business** | **Total** | **Retained Business** | **Ceded Business** | **Total** |
| | **(in millions)** | **(in millions)** | **(in millions)** | **(in millions)** | **(in millions)** | **(in millions)** |
| **REVENUES** |  |  |  |  |  |  |
| Premiums | $10 | $— | $10 | $8 | $— | $8 |
| Policy charges and fee income | 103 |  | 103 | 113 |  | 113 |
| Net investment income (1) | 55 | 16 | 71 | 59 | 16 | 75 |
| Asset management and service fees | 21 |  | 21 | 23 |  | 23 |
| Other income | 1 |  | 1 |  |  |  |
| Investment gains (losses), net | (348) | 113 | (235) | (179) | 32 | (147) |
| &nbsp;&nbsp;**TOTAL REVENUES** | (158) | 129 | (29) | 24 | 48 | 72 |
| **BENEFITS AND EXPENSES** |  |  |  |  |  |  |
| Policyholder benefits and changes in fair value of insurance liabilities | (162) | 129 | (33) | 14 | 48 | 62 |
| Commission expense | 20 |  | 20 | 23 |  | 23 |
| General, administrative and other expenses (2) | 15 |  | 15 | 20 |  | 20 |
| &nbsp;&nbsp;**TOTAL BENEFITS AND EXPENSES** | (127) | 129 | 2 | 57 | 48 | 105 |
| **LOSS FROM OPERATIONS BEFORE INCOME TAXES** | (31) |  | (31) | (33) |  | (33) |
| &nbsp;&nbsp;Less: Income tax benefit | (62) |  | (62) | (3) |  | (3) |
| **NET INCOME (LOSS)** | $31 | $— | $31 | $(30) | $— | $(30) |
| &nbsp;&nbsp;Other comprehensive income (loss), before tax: |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Changes in own-credit risk related to insurance liabilities | (8) |  | (8) | 61 |  | 61 |
| &nbsp;&nbsp;&nbsp;&nbsp;Less: Income tax expense (benefit) | (2) |  | (2) | 13 |  | 13 |
| &nbsp;&nbsp;Other comprehensive income (loss), net of taxes | (6) |  | (6) | 48 |  | 48 |
| **COMPREHENSIVE INCOME** | $25 | $— | $25 | $18 | $— | $18 |

---

(1) For the three months ended June 30, 2025 and 2024, investment expenses within the Retained Business include $16 million and $18 million, respectively, of expense related to liabilities associated with repurchase agreements.

(2) Represents "other segment items," which include expense charges and allocations from FGH, reinsurer expense allowances, professional service fees, and certain other miscellaneous expenses.

------

[**Table of Contents**](#i21731b18eb5542d2b57e39e6ba9ccb3d_7)

**Fortitude Life Insurance & Annuity Company**

**Notes to Unaudited Interim Consolidated Financial Statements** 

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | **Six Months Ended June 30** | **Six Months Ended June 30** | **Six Months Ended June 30** | **Six Months Ended June 30** | **Six Months Ended June 30** | **Six Months Ended June 30** |
| | **2025** | **2025** | **2025** | **2024** | **2024** | **2024** |
| | **Retained Business** | **Ceded Business** | **Total** | **Retained Business** | **Ceded Business** | **Total** |
| | **(in millions)** | **(in millions)** | **(in millions)** | **(in millions)** | **(in millions)** | **(in millions)** |
| **REVENUES** |  |  |  |  |  |  |
| Premiums | $17 | $— | $17 | $18 | $— | $18 |
| Policy charges and fee income | 210 |  | 210 | 225 |  | 225 |
| Net investment income (1) | 104 | 32 | 136 | 115 | 30 | 145 |
| Asset management and service fees | 43 |  | 43 | 46 |  | 46 |
| Other income (loss) | (2) |  | (2) | 2 |  | 2 |
| Investment gains (losses), net | (126) | 63 | (63) | (604) | 136 | (468) |
| &nbsp;&nbsp;**TOTAL REVENUES** | 246 | 95 | 341 | (198) | 166 | (32) |
| **BENEFITS AND EXPENSES** |  |  |  |  |  |  |
| Policyholder benefits and changes in fair value of insurance liabilities | 231 | 95 | 326 | (418) | 166 | (252) |
| Commission expense | 42 |  | 42 | 46 |  | 46 |
| General, administrative and other expenses (2) | 32 |  | 32 | 38 |  | 38 |
| **TOTAL BENEFITS AND EXPENSES** | 305 | 95 | 400 | (334) | 166 | (168) |
| **INCOME (LOSS) FROM OPERATIONS BEFORE INCOME TAXES** | (59) |  | (59) | 136 |  | 136 |
| &nbsp;&nbsp;Less: Income tax expense (benefit) | (66) |  | (66) | 21 |  | 21 |
| **NET INCOME** | $7 | $— | $7 | $115 | $— | $115 |
| Other comprehensive income, before tax: |  |  |  |  |  |  |
| &nbsp;&nbsp;Changes in own-credit risk related to insurance liabilities | 40 |  | 40 | 48 |  | 48 |
| &nbsp;&nbsp;&nbsp;&nbsp;Less: Income tax expense | 8 |  | 8 | 10 |  | 10 |
| &nbsp;&nbsp;Other comprehensive income, net of taxes | 32 |  | 32 | 38 |  | 38 |
| **COMPREHENSIVE INCOME** | $39 | $— | $39 | 153 | $— | $153 |

---

(1) For the six months ended June 30, 2025 and 2024, investment expenses within the Retained Business include $31 million and $33 million, respectively, of expense related to liabilities associated with repurchase agreements.

(2) Represents "other segment items," which include expense charges and allocations from FGH, reinsurer expense allowances, professional service fees, and certain other miscellaneous expenses.

------

[**Table of Contents**](#i21731b18eb5542d2b57e39e6ba9ccb3d_7)

**Fortitude Life Insurance & Annuity Company**

**Notes to Unaudited Interim Consolidated Financial Statements** 

**4.&nbsp;&nbsp;&nbsp;&nbsp;FAIR VALUE OF ASSETS AND LIABILITIES** 

**Fair Value Measurement** – Fair value represents the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The authoritative fair value guidance establishes a framework for measuring fair value that includes a hierarchy used to classify the inputs used in measuring fair value. The level in the fair value hierarchy within which the fair value measurement falls is determined based on the lowest level input that is significant to the fair value measurement. The levels of the fair value hierarchy are as follows:

Level 1 **-** Fair value is based on unadjusted quoted prices in active markets that are accessible to the Company for identical assets or liabilities.

Level 2 **-** Fair value is based on significant inputs, other than quoted prices included in Level 1, that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the asset or liability through corroboration with observable market data. Level 2 inputs include quoted market prices in active markets for similar assets and liabilities, quoted market prices in markets that are not active for identical or similar assets or liabilities, and other market observable inputs.

Level 3 **-** Fair value is based on at least one significant unobservable input for the asset or liability. The assets and liabilities in this category may require significant judgment or estimation in determining the fair value.

For a discussion of the Company's valuation methodologies for assets and liabilities measured at fair value and the fair value hierarchy, see Note 4 to the Financial Statements included in the Company's Annual Report on Form 10-K for the year ended December 31, 2024.

***Fair Value Option Election***

We have elected to apply the fair value option to certain financial instruments and insurance and reinsurance contracts that give rise to assets and liabilities. With respect to our insurance contracts, as a result of this election, we do not separately disclose on our consolidated balance sheets, or provide any associated disclosures, regarding liabilities for future policyholder benefits, market risk benefits, or deferred acquisition costs as required under ASC 944. See Note 11 for certain disclosures regarding our separate account assets and liabilities.

The following are the financial assets and liabilities for which we have elected the fair value option. See Notes 2 and 4 to the Financial Statements included in the Company's Annual Report on Form 10-K for the year ended December 31, 2024 for further information.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Fixed maturity securities

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Mortgage loans

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Reinsurance recoverables

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Separate account assets and liabilities

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Net modified coinsurance receivable/payable

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Deposit asset

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Insurance liabilities

------

[**Table of Contents**](#i21731b18eb5542d2b57e39e6ba9ccb3d_7)

**Fortitude Life Insurance & Annuity Company**

**Notes to Unaudited Interim Consolidated Financial Statements** 

**Assets and Liabilities by Hierarchy Level** – The tables below present the balances of assets and liabilities reported at fair value on a recurring basis, as of the dates indicated.

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | **June 30, 2025** | **June 30, 2025** | **June 30, 2025** | **June 30, 2025** | **June 30, 2025** |
| | **Level 1** | **Level 2** | **Level 3** | **Netting (1)** | **Total** |
| | **(in millions)** | **(in millions)** | **(in millions)** | **(in millions)** | **(in millions)** |
| **Total Business** | | | | | |
| **Assets** | | | | | |
| Fixed maturity securities |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;U.S Treasury securities and obligations of U.S. government authorities and agencies | $— | $490 | $— | $— | $490 |
| &nbsp;&nbsp;&nbsp;&nbsp;Foreign government bonds |  | 1 |  |  | 1 |
| &nbsp;&nbsp;&nbsp;&nbsp;U.S. corporate public securities |  | 2678 |  |  | 2678 |
| &nbsp;&nbsp;&nbsp;&nbsp;U.S. corporate private securities |  | 143 | 270 |  | 413 |
| &nbsp;&nbsp;&nbsp;&nbsp;Foreign corporate public securities |  | 273 |  |  | 273 |
| &nbsp;&nbsp;&nbsp;&nbsp;Foreign corporate private securities |  | 31 | 72 |  | 103 |
| &nbsp;&nbsp;&nbsp;&nbsp;Asset-backed securities (2) |  | 1118 | 59 |  | 1177 |
| &nbsp;&nbsp;&nbsp;&nbsp;Commercial mortgage-backed securities |  | 28 |  |  | 28 |
| &nbsp;&nbsp;&nbsp;&nbsp;Residential mortgage-backed securities |  | 118 |  |  | 118 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total fixed maturity securities |  | 4880 | 401 |  | 5281 |
| Mortgage loans (3) |  |  | 354 |  | 354 |
| Cash and cash equivalents | 442 |  |  |  | 442 |
| Other invested assets - derivatives | 4 | 1068 |  | (697) | 375 |
| Deposit asset |  |  | 342 |  | 342 |
| Reinsurance recoverables |  |  | 173 |  | 173 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Subtotal excluding separate account assets | 446 | 5948 | 1270 | (697) | 6967 |
| Separate account assets |  | 22448 |  |  | 22448 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total assets | $446 | $28396 | $1270 | $(697) | $29415 |
| **Liabilities** |  |  |  |  |  |
| Insurance liabilities | $— | $— | $4488 | $— | $4488 |
| Other liabilities - derivatives | 30 | 1510 |  | (1449) | 91 |
| Net modified coinsurance payable |  |  | 145 |  | 145 |
| Separate account liabilities |  | 22448 |  |  | 22448 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total liabilities | $30 | $23958 | $4633 | $(1449) | $27172 |

---

(1)"Netting" amounts represent offsetting considerations as disclosed in Note 6.

(2)Includes credit-tranched securities collateralized by syndicated bank loans, sub-prime mortgages, auto loans, credit cards, education loans and other asset types.

(3)As of June 30, 2025, the aggregate fair value of mortgage loans exceeded the aggregate unpaid principal by $5 million.

Excluded from the above chart are private equity funds, for which fair value is measured at NAV per share (or its equivalent) as a practical expedient. At June 30, 2025, the fair value of these private equity funds was $23 million.

------

[**Table of Contents**](#i21731b18eb5542d2b57e39e6ba9ccb3d_7)

**Fortitude Life Insurance & Annuity Company**

**Notes to Unaudited Interim Consolidated Financial Statements** 

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | **June 30, 2025** | **June 30, 2025** | **June 30, 2025** | **June 30, 2025** | **June 30, 2025** |
| | **Level 1** | **Level 2** | **Level 3** | **Netting (1)** | **Total** |
| | **(in millions)** | **(in millions)** | **(in millions)** | **(in millions)** | **(in millions)** |
| **Retained Business** | | | | | |
| **Assets** | | | | | |
| Fixed maturity securities |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;U.S Treasury securities and obligations of U.S. government authorities and agencies | $— | $412 | $— | $— | $412 |
| &nbsp;&nbsp;&nbsp;&nbsp;U.S. corporate public securities |  | 1887 |  |  | 1887 |
| &nbsp;&nbsp;&nbsp;&nbsp;U.S. corporate private securities |  |  | 269 |  | 269 |
| &nbsp;&nbsp;&nbsp;&nbsp;Foreign corporate public securities |  | 110 |  |  | 110 |
| &nbsp;&nbsp;&nbsp;&nbsp;Foreign corporate private securities |  |  | 68 |  | 68 |
| &nbsp;&nbsp;&nbsp;&nbsp;Asset-backed securities (2) |  | 1053 | 52 |  | 1105 |
| &nbsp;&nbsp;&nbsp;&nbsp;Commercial mortgage-backed securities |  | 28 |  |  | 28 |
| &nbsp;&nbsp;&nbsp;&nbsp;Residential mortgage-backed securities |  | 7 |  |  | 7 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total fixed maturity securities |  | 3497 | 389 |  | 3886 |
| Mortgage loans (3) |  |  | 354 |  | 354 |
| Cash and cash equivalents | 340 |  |  |  | 340 |
| Other invested assets - derivatives | 4 | 684 |  | (668) | 20 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Subtotal excluding separate account assets | 344 | 4181 | 743 | (668) | 4600 |
| Separate account assets |  | 20459 |  |  | 20459 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total assets | $344 | $24640 | $743 | $(668) | $25059 |
| **Liabilities** |  |  |  |  |  |
| Insurance liabilities | $— |  | $2271 | $— | $2271 |
| Other liabilities - derivatives | 30 | 1477 |  | (1420) | 87 |
| Separate account liabilities |  | 20459 |  |  | 20459 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total liabilities | $30 | $21936 | $2271 | $(1420) | $22817 |

---

(1)"Netting" amounts represent offsetting considerations as disclosed in Note 6.

(2)Includes credit-tranched securities collateralized by syndicated bank loans, sub-prime mortgages, auto loans, credit cards, education loans and other asset types.

(3)As of June 30, 2025, the aggregate fair value of mortgage loans exceeded the aggregate unpaid principal by $5 million.

Excluded from the above chart are private equity funds, for which fair value is measured at NAV per share (or its equivalent) as a practical expedient. At June 30, 2025 the fair values of these private equity funds was $23 million.

------

[**Table of Contents**](#i21731b18eb5542d2b57e39e6ba9ccb3d_7)

**Fortitude Life Insurance & Annuity Company**

**Notes to Unaudited Interim Consolidated Financial Statements** 

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | **June 30, 2025** | **June 30, 2025** | **June 30, 2025** | **June 30, 2025** | **June 30, 2025** |
| | **Level 1** | **Level 2** | **Level 3** | **Netting (1)** | **Total** |
| | **(in millions)** | **(in millions)** | **(in millions)** | **(in millions)** | **(in millions)** |
| **Ceded Business** | | | | | |
| **Assets** | | | | | |
| Fixed maturity securities |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;U.S Treasury securities and obligations of U.S. government authorities and agencies | $— | $78 | $— | $— | $78 |
| &nbsp;&nbsp;&nbsp;&nbsp;Foreign government bonds |  | 1 |  |  | 1 |
| &nbsp;&nbsp;&nbsp;&nbsp;U.S. corporate public securities |  | 791 |  |  | 791 |
| &nbsp;&nbsp;&nbsp;&nbsp;U.S. corporate private securities |  | 143 | 1 |  | 144 |
| &nbsp;&nbsp;&nbsp;&nbsp;Foreign corporate public securities |  | 163 |  |  | 163 |
| &nbsp;&nbsp;&nbsp;&nbsp;Foreign corporate private securities |  | 31 | 4 |  | 35 |
| &nbsp;&nbsp;&nbsp;&nbsp;Asset-backed securities (2) |  | 65 | 7 |  | 72 |
| &nbsp;&nbsp;&nbsp;&nbsp;Residential mortgage-backed securities |  | 111 |  |  | 111 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total fixed maturity securities |  | 1383 | 12 |  | 1395 |
| Cash and cash equivalents | 102 |  |  |  | 102 |
| Other invested assets - derivatives |  | 384 |  | (29) | 355 |
| Deposit asset |  |  | 342 |  | 342 |
| Reinsurance recoverables |  |  | 173 |  | 173 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Subtotal excluding separate account assets | 102 | 1767 | 527 | (29) | 2367 |
| Separate account assets |  | 1989 |  |  | 1989 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total assets | $102 | $3756 | $527 | $(29) | $4356 |
| **Liabilities** |  |  |  |  |  |
| Insurance liabilities | $— | $— | $2217 | $— | $2217 |
| Other liabilities - derivatives |  | 33 |  | (29) | 4 |
| Net modified coinsurance payable |  |  | 145 |  | 145 |
| Separate account liabilities |  | 1989 |  |  | 1989 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total liabilities | $— | $2022 | $2362 | $(29) | $4355 |

---

(1)"Netting" amounts represent offsetting considerations as disclosed in Note 6.

(2)Includes credit-tranched securities collateralized by syndicated bank loans, sub-prime mortgages, auto loans, credit cards, education loans and other asset types.

------

[**Table of Contents**](#i21731b18eb5542d2b57e39e6ba9ccb3d_7)

**Fortitude Life Insurance & Annuity Company**

**Notes to Unaudited Interim Consolidated Financial Statements** 

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** |
| | **Level 1** | **Level 2** | **Level 3** | **Netting (1)** | **Total** |
| | **(in millions)** | **(in millions)** | **(in millions)** | **(in millions)** | **(in millions)** |
| **Total Business** | | | | | |
| **Assets** | | | | | |
| Fixed maturity securities |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;U.S Treasury securities and obligations of U.S. government authorities and agencies | $— | $479 | $— | $— | $479 |
| &nbsp;&nbsp;&nbsp;&nbsp;Obligations of U.S. states and their political subdivisions |  | 112 |  |  | 112 |
| &nbsp;&nbsp;&nbsp;&nbsp;Foreign government bonds |  | 1 |  |  | 1 |
| &nbsp;&nbsp;&nbsp;&nbsp;U.S. corporate public securities |  | 2775 |  |  | 2775 |
| &nbsp;&nbsp;&nbsp;&nbsp;U.S. corporate private securities |  | 148 | 272 |  | 420 |
| &nbsp;&nbsp;&nbsp;&nbsp;Foreign corporate public securities |  | 270 |  |  | 270 |
| &nbsp;&nbsp;&nbsp;&nbsp;Foreign corporate private securities |  | 29 | 68 |  | 97 |
| &nbsp;&nbsp;&nbsp;&nbsp;Asset-backed securities (2) |  | 618 | 81 |  | 699 |
| &nbsp;&nbsp;&nbsp;&nbsp;Commercial mortgage-backed securities |  | 34 |  |  | 34 |
| &nbsp;&nbsp;&nbsp;&nbsp;Residential mortgage-backed securities |  | 119 | 3 |  | 122 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total fixed maturity securities |  | 4585 | 424 |  | 5009 |
| Mortgage loans (3) |  |  | 364 |  | 364 |
| Short-term investments |  | 8 |  |  | 8 |
| Cash and cash equivalents | 563 |  |  |  | 563 |
| Other invested assets - derivatives | 36 | 940 |  | (649) | 327 |
| Deposit asset |  |  | 364 |  | 364 |
| Reinsurance recoverables |  |  | 163 |  | 163 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Subtotal excluding separate account assets | 599 | 5533 | 1315 | (649) | 6798 |
| Separate account assets |  | 22857 |  |  | 22857 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total assets | $599 | $28390 | $1315 | $(649) | $29655 |
| **Liabilities** |  |  |  |  |  |
| Insurance liabilities |  |  | 4380 |  | 4380 |
| Other liabilities - derivatives | 9 | 1112 |  | (1035) | 86 |
| Net modified coinsurance payable |  |  | 145 |  | 145 |
| Separate account liabilities |  | 22857 |  |  | 22857 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total liabilities | $9 | $23969 | $4525 | $(1035) | $27468 |

---

(1)"Netting" amounts represent offsetting considerations as disclosed in Note 6.

(2)Includes credit-tranched securities collateralized by syndicated bank loans, sub-prime mortgages, auto loans, credit cards, education loans and other asset types.

(3)As of December 31, 2024, the aggregate fair value of mortgage loans exceeded the aggregate unpaid principal by $10 million.

Excluded from the above chart are certain private equity funds, which are classified as other invested assets on the consolidated statements of financial position. Also excluded from the above chart are beneficial interests held through private equity funds that are classified as fixed maturity securities, for which fair value is measured at NAV per share (or its equivalent) as a practical expedient. At December 31, 2024 the fair values of these private equity funds and beneficial interests were $27 million and $13 million, respectively.

------

[**Table of Contents**](#i21731b18eb5542d2b57e39e6ba9ccb3d_7)

**Fortitude Life Insurance & Annuity Company**

**Notes to Unaudited Interim Consolidated Financial Statements** 

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** |
| | **Level 1** | **Level 2** | **Level 3** | **Netting (1)** | **Total** |
| | **(in millions)** | **(in millions)** | **(in millions)** | **(in millions)** | **(in millions)** |
| **Retained Business** | | | | | |
| **Assets** | | | | | |
| Fixed maturity securities |  |  |  |  |  |
| &nbsp;&nbsp;U.S Treasury securities and obligations of U.S. government authorities and agencies | $— | $402 | $— | $— | $402 |
| &nbsp;&nbsp;Obligations of U.S. states and their political subdivisions |  | 112 |  |  | 112 |
| &nbsp;&nbsp;U.S. corporate public securities |  | 1969 |  |  | 1969 |
| &nbsp;&nbsp;U.S. corporate private securities |  |  | 271 |  | 271 |
| &nbsp;&nbsp;Foreign corporate public securities |  | 107 |  |  | 107 |
| &nbsp;&nbsp;Foreign corporate private securities |  |  | 64 |  | 64 |
| &nbsp;&nbsp;Asset-backed securities (2) |  | 568 | 70 |  | 638 |
| &nbsp;&nbsp;Commercial mortgage-backed securities |  | 34 |  |  | 34 |
| &nbsp;&nbsp;Residential mortgage-backed securities |  | 8 | 3 |  | 11 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total fixed maturity securities | $— | $3200 | $408 | $— | $3608 |
| Mortgage loans (3) |  |  | 364 |  | 364 |
| Cash and cash equivalents | 498 |  |  |  | 498 |
| Other invested assets - derivatives | 36 | 593 |  | (615) | 14 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Subtotal excluding separate account assets | 534 | 3793 | 772 | (615) | 4484 |
| Separate account assets |  | 20842 |  |  | 20842 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total assets | $534 | $24635 | $772 | $(615) | $25326 |
| **Liabilities** |  |  |  |  |  |
| Insurance liabilities |  |  | 2196 |  | 2196 |
| Other liabilities - derivatives | 9 | 1078 |  | (1001) | 86 |
| Separate account liabilities |  | 20842 |  |  | 20842 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total liabilities | $9 | $21920 | $2196 | $(1001) | $23124 |

---

&nbsp;&nbsp;&nbsp;&nbsp;(1)"Netting" amounts represent offsetting considerations as disclosed in Note 6.

&nbsp;&nbsp;&nbsp;&nbsp;(2)Includes credit-tranched securities collateralized by syndicated bank loans, sub-prime mortgages, auto loans, credit cards, education loans and other asset types.

&nbsp;&nbsp;&nbsp;&nbsp;(3)As of December 31, 2024, the aggregate fair value of mortgage loans exceeded the aggregate unpaid principal by $10 million.

Excluded from the above chart are certain private equity funds, which are classified as other invested assets on the consolidated statements of financial position. Also excluded from the above chart are beneficial interests held through private equity funds that are classified as fixed maturity securities, for which fair value is measured at NAV per share (or its equivalent) as a practical expedient. At December 31, 2024, the fair values of these private equity funds and beneficial interests were $27 million and $13 million, respectively.

------

[**Table of Contents**](#i21731b18eb5542d2b57e39e6ba9ccb3d_7)

**Fortitude Life Insurance & Annuity Company**

**Notes to Unaudited Interim Consolidated Financial Statements** 

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** |
| | **Level 1** | **Level 2** | **Level 3** | **Netting (1)** | **Total** |
| | **(in millions)** | **(in millions)** | **(in millions)** | **(in millions)** | **(in millions)** |
| **Ceded Business** | | | | | |
| **Assets** | | | | | |
| Fixed maturity securities |  |  |  |  |  |
| &nbsp;&nbsp;U.S Treasury securities and obligations of U.S. government authorities and agencies | $— | $77 | $— | $— | $77 |
| &nbsp;&nbsp;Foreign government bonds |  | 1 |  |  | 1 |
| &nbsp;&nbsp;U.S. corporate public securities |  | 806 |  |  | 806 |
| &nbsp;&nbsp;U.S. corporate private securities |  | 148 | 1 |  | 149 |
| &nbsp;&nbsp;Foreign corporate public securities |  | 163 |  |  | 163 |
| &nbsp;&nbsp;Foreign corporate private securities |  | 29 | 4 |  | 33 |
| &nbsp;&nbsp;Asset-backed securities (2) |  | 50 | 11 |  | 61 |
| &nbsp;&nbsp;Residential mortgage-backed securities |  | 111 |  |  | 111 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total fixed maturity securities | $— | $1385 | $16 | $— | $1401 |
| Short-term investments |  | 8 |  |  | 8 |
| Cash and cash equivalents | 65 |  |  |  | 65 |
| Other invested assets - derivatives |  | 347 |  | (34) | 313 |
| Deposit asset |  |  | 364 |  | 364 |
| Reinsurance recoverables |  |  | 163 |  | 163 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Subtotal excluding separate account assets | 65 | 1740 | 543 | (34) | 2314 |
| Separate account assets |  | 2015 |  |  | 2015 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total assets | $65 | $3755 | $543 | $(34) | $4329 |
| **Liabilities** |  |  |  |  |  |
| Insurance liabilities |  |  | 2184 |  | 2184 |
| Other liabilities - derivatives |  | 34 |  | (34) |  |
| Net modified coinsurance payable |  |  | 145 |  | 145 |
| Separate account liabilities |  | 2015 |  |  | 2015 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total liabilities | $— | $2049 | $2329 | $(34) | $4344 |

---

&nbsp;&nbsp;&nbsp;&nbsp;(1)"Netting" amounts represent offsetting considerations as disclosed in Note 6.

&nbsp;&nbsp;&nbsp;&nbsp;(2)Includes credit-tranched securities collateralized by syndicated bank loans, sub-prime mortgages, auto loans, credit cards, education loans and other asset types.

------

[**Table of Contents**](#i21731b18eb5542d2b57e39e6ba9ccb3d_7)

**Fortitude Life Insurance & Annuity Company**

**Notes to Unaudited Interim Consolidated Financial Statements** 

**Quantitative Information Regarding Internally Priced Level 3 Assets and Liabilities –** The tables below present information about the significant unobservable inputs used for recurring fair value measurements regarding certain Level 3 assets and liabilities.

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| | **June 30, 2025** | **June 30, 2025** | **June 30, 2025** | **June 30, 2025** | **June 30, 2025** | **June 30, 2025** | **June 30, 2025** |
| | **Fair Value** | **Valuation Techniques** | **Unobservable&nbsp;&nbsp;&nbsp;&nbsp;<br>Inputs** | **Minimum** | **Maximum** | **Weighted Average** | **Impact of<br>Increase in<br>Input on Fair <br>Value (1)** |
| | **(in millions)** | | | | | | |
| **Assets:** | | | | | | | |
| *Retained business* |  |  |  |  |  |  |  |
| &nbsp;&nbsp;Fixed maturity securities |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;U.S. corporate private securities | $226 | Discounted cash flow | Discount rate | 4.87% | 9.45% | 6.69% | Decrease |
| &nbsp;&nbsp;&nbsp;&nbsp;Foreign corporate private securities | 46 | Discounted cash flow | Discount rate | 4.88% | 7.49% | 6.49% | Decrease |
| &nbsp;&nbsp;&nbsp;&nbsp;Asset-backed securities | 20 | Discounted cash flow | Discount rate | 6.83% | 12.86% | 9.34% | Decrease |
| &nbsp;&nbsp;Mortgage loans |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Residential mortgage loans | 276 | Level yield | Market yield | 5.05% | 10.14% | 6.91% | Decrease |
| &nbsp;&nbsp;&nbsp;&nbsp;Commercial mortgage loans | 78 | Discounted cash flow | Discount rate | 5.64% | 7.04% | 6.56% | Decrease |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total Mortgage loans | 354 |  |  |  |  |  |  |
| *Ceded business* |  |  |  |  |  |  |  |
| &nbsp;&nbsp;Foreign corporate private securities | 4 | Discounted cash flow | Discount rate | 11.57% | 20.00% | 12.30% | Decrease |
| &nbsp;&nbsp;Deposit asset | 342 | Fair values are determined using the same unobservable inputs as insurance liabilities. | Fair values are determined using the same unobservable inputs as insurance liabilities. | Fair values are determined using the same unobservable inputs as insurance liabilities. | Fair values are determined using the same unobservable inputs as insurance liabilities. | Fair values are determined using the same unobservable inputs as insurance liabilities. |  |
| &nbsp;&nbsp;Reinsurance recoverables | 173 | Fair values are determined using the same unobservable inputs as insurance liabilities. | Fair values are determined using the same unobservable inputs as insurance liabilities. | Fair values are determined using the same unobservable inputs as insurance liabilities. | Fair values are determined using the same unobservable inputs as insurance liabilities. | Fair values are determined using the same unobservable inputs as insurance liabilities. |  |
| **Liabilities:** |  |  |  |  |  |  |  |
| Insurance liabilities |  |  |  |  |  |  |  |
| &nbsp;&nbsp;Retained business | $2271 | Discounted cash flow | Equity volatility curve (2) | 15% | 26% |  | Increase |
|  |  |  | Lapse rate (3) | 0.65% | 13% |  | Decrease |
|  |  |  | Spread over risk free (4) | 0.00% | 2.15% |  | Decrease |
|  |  |  | Utilization rate (5) | 87.5% | 100% |  | Increase |
|  |  |  | Withdrawal rate (6) | See table footnote (6) below. | See table footnote (6) below. | See table footnote (6) below. | See table footnote (6) below. |
|  |  |  | Mortality rate (7) | 0% | 16% |  | Decrease |
| &nbsp;&nbsp;Ceded business | 2217 | Discounted cash flow | Equity volatility curve (2) | 15% | 26% |  | Increase |
|  |  |  | Lapse rate (3) | 0.65% | 13% |  | Decrease |
|  |  |  | Spread over risk free (4) | 0.50% | 0.50% |  | Decrease |
|  |  |  | Utilization rate (5) | 87.5% | 100% |  | Increase |
|  |  |  | Withdrawal rate (6) | See table footnote (6) below. | See table footnote (6) below. | See table footnote (6) below. | See table footnote (6) below. |
|  |  |  | Mortality rate (7) | 0% | 16% |  | Decrease |
| Net modified coinsurance payable | 145 | Fair values are determined using the same unobservable inputs as insurance liabilities. | Fair values are determined using the same unobservable inputs as insurance liabilities. | Fair values are determined using the same unobservable inputs as insurance liabilities. | Fair values are determined using the same unobservable inputs as insurance liabilities. | Fair values are determined using the same unobservable inputs as insurance liabilities. |  |

---

Excluded from the above chart are certain level 3 assets that were valued by an external vendor and for which the unobservable inputs were not readily available. As of June 30, 2025, fixed maturity securities of $97 million and $8 million were excluded from the Retained business and Ceded business, respectively, under this criteria.

------

[**Table of Contents**](#i21731b18eb5542d2b57e39e6ba9ccb3d_7)

**Fortitude Life Insurance & Annuity Company**

**Notes to Unaudited Interim Consolidated Financial Statements** 

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** |
| | **Fair Value** | **Valuation Techniques** | **Unobservable&nbsp;&nbsp;&nbsp;&nbsp;<br>Inputs** | **Minimum** | **Maximum** | **Weighted Average** | **Impact of<br>Increase in<br>Input on Fair Value (1)** |
| | **(in millions)** | | | | | | |
| **Assets:** | | | | | | | |
| Retained business |  |  |  |  |  |  |  |
| &nbsp;&nbsp;Fixed maturity securities |  |  |  |  |  |  |  |
| &nbsp;&nbsp;U.S. corporate private securities | $228 | Discounted cash flow | Discount rate | 4.96% | 8.92% | 6.78% | Decrease |
| &nbsp;&nbsp;Foreign corporate private securities | 42 | Discounted cash flow | Discount rate | 4.80% | 7.76% | 6.07% | Decrease |
| &nbsp;&nbsp;Asset-backed securities | 45 | Discounted cash flow | Discount rate | 6.68% | 12.29% | 8.33% | Decrease |
| &nbsp;&nbsp;Mortgage loans |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Residential mortgage loans | 286 | Discounted cash flow | Discount rate | 3.77% | 9.94% | 6.41% | Decrease |
| &nbsp;&nbsp;&nbsp;&nbsp;Commercial mortgage loans | 78 | Discounted cash flow | Discount rate | 6.04% | 7.32% | 6.92% | Decrease |
| &nbsp;&nbsp;Total Mortgage loans | 364 |  |  |  |  |  |  |
| Ceded business |  |  |  |  |  |  |  |
| &nbsp;&nbsp;Foreign corporate private securities | 4 | Discounted cash flow | Discount rate | 12.00% | 20.00% | 13.00% | Decrease |
| &nbsp;&nbsp;Deposit asset | 364 | Fair values are determined using the same unobservable inputs as insurance liabilities. | Fair values are determined using the same unobservable inputs as insurance liabilities. | Fair values are determined using the same unobservable inputs as insurance liabilities. | Fair values are determined using the same unobservable inputs as insurance liabilities. | Fair values are determined using the same unobservable inputs as insurance liabilities. | Fair values are determined using the same unobservable inputs as insurance liabilities. |
| &nbsp;&nbsp;Reinsurance recoverables | 163 | Fair values are determined using the same unobservable inputs as insurance liabilities. | Fair values are determined using the same unobservable inputs as insurance liabilities. | Fair values are determined using the same unobservable inputs as insurance liabilities. | Fair values are determined using the same unobservable inputs as insurance liabilities. | Fair values are determined using the same unobservable inputs as insurance liabilities. | Fair values are determined using the same unobservable inputs as insurance liabilities. |
| **Liabilities:** |  |  |  |  |  |  |  |
| Retained business |  |  |  |  |  |  |  |
| &nbsp;&nbsp;Insurance liabilities | $2196 | Discounted cash flow | Equity volatility curve (2) | 16% | 26% |  | Increase |
|  |  |  | Lapse rate (3) | 0.65% | 13% |  | Decrease |
|  |  |  | Spread over risk free (4) | 0.46% | 2.10% |  | Decrease |
|  |  |  | Utilization rate (5) | 87.5% | 100% |  | Increase |
|  |  |  | Withdrawal rate (6) | See table footnote (6) below. | See table footnote (6) below. | See table footnote (6) below. | See table footnote (6) below. |
|  |  |  | Mortality rate (7) | 0% | 16% |  | Decrease |
| Ceded business |  |  |  |  |  |  |  |
| &nbsp;&nbsp;Insurance liabilities | $2184 | Discounted cash flow | Equity volatility curve (2) | 16% | 26% |  | Increase |
|  |  |  | Lapse rate (3) | 0.65% | 13% |  | Decrease |
|  |  |  | Spread over risk free (4) | 0.50% | 0.50% |  | Decrease |
|  |  |  | Utilization rate (5) | 87.5% | 100% |  | Increase |
|  |  |  | Withdrawal rate (6) | See table footnote (6) below. | See table footnote (6) below. | See table footnote (6) below. | See table footnote (6) below. |
|  |  |  | Mortality rate (7) | 0% | 16% |  | Decrease |
| &nbsp;&nbsp;Net modified coinsurance payable | 145 | Fair values are determined using the same unobservable inputs as insurance liabilities. | Fair values are determined using the same unobservable inputs as insurance liabilities. | Fair values are determined using the same unobservable inputs as insurance liabilities. | Fair values are determined using the same unobservable inputs as insurance liabilities. | Fair values are determined using the same unobservable inputs as insurance liabilities. | Fair values are determined using the same unobservable inputs as insurance liabilities. |

---

Excluded from the above chart are certain level 3 assets that were valued by an external vendor and for which the unobservable inputs were not readily available. As of December 31, 2024, fixed maturity securities of $93 million and $12 million were excluded from the Retained business and Ceded business, respectively, under this criteria.

(1)Conversely, the impact of a decrease in input would have the opposite impact on fair value as that presented in the table.

(2)&nbsp;&nbsp;&nbsp;&nbsp;The equity volatility curve assumption is based on 1 year and 2 year index-specific at-the-money implied volatilities grading to 10 year total variance. Increased volatility increases the fair value of the liability.

(3)&nbsp;&nbsp;&nbsp;&nbsp;Lapse rate assumptions for contracts with living benefit guarantees are adjusted at the contract level based on the in-the-moneyness of the living benefit and reflect other factors, such as the applicability of any surrender charges. Lapse rate assumptions are reduced when contracts are more in-the-money. Lapse rate assumptions for contracts with index-linked crediting guarantees may be adjusted at the contract level based on the applicability of any surrender charges, product type, and market related factors such as interest rates. Lapse rates are also generally assumed to be lower for the period where surrender charges apply.

(4)&nbsp;&nbsp;&nbsp;&nbsp;The spread over the risk-free rate swap curve represents the premium added to the proxy for the risk-free rate to reflect the Company's estimates of rates that a market participant would use to value the living benefits in both the accumulation and payout phases and index-linked interest crediting guarantees. This spread includes an estimate of own-credit risk (OCR), which is the risk that the obligation will not be fulfilled by the Company. OCR is primarily estimated by utilizing the credit spreads associated with issuing funding agreements, adjusted for any illiquidity risk premium. In order to reflect the financial strength ratings of the Company, credit spreads associated with funding agreements, as opposed to credit spread associated with debt, are utilized in developing this estimate because funding agreements, living benefit guarantees, and index-linked interest crediting guarantees are insurance liabilities and are therefore senior to debt.

------

[**Table of Contents**](#i21731b18eb5542d2b57e39e6ba9ccb3d_7)

**Fortitude Life Insurance & Annuity Company**

**Notes to Unaudited Interim Consolidated Financial Statements** 

(5)&nbsp;&nbsp;&nbsp;&nbsp;The utilization rate assumption estimates the percentage of contracts that will utilize the benefit during the contract duration and begin lifetime withdrawals at various time intervals from contract inception. Utilization assumptions may vary by product type, tax status and age. The impact of changes in these assumptions is highly dependent on the product type, the age of the contractholder at the time of the sale, and the timing of the first lifetime income withdrawal.

(6)&nbsp;&nbsp;&nbsp;&nbsp;The withdrawal rate assumption estimates the magnitude of annual contractholder withdrawals relative to the maximum allowable amount under the contract. These assumptions vary based on the age of the contractholder, the tax status of the contract and the duration since the contractholder began lifetime withdrawals. As of both June 30, 2025 and December 31, 2024, the minimum withdrawal rate assumption was 84% the maximum withdrawal rate assumption may be greater than 100%. The fair value of the liability will generally increase the closer the withdrawal rate is to 100% and decrease as the withdrawal rate moves further away from 100%.

(7)&nbsp;&nbsp;&nbsp;&nbsp;The range reflects the mortality rates for the vast majority of business with living benefits, with policyholders ranging from 45 to 90 years old. While the majority of living benefits have a minimum age requirement, certain other contracts do not have an age restriction. This results in contractholders with mortality rates approaching 0% for certain benefits.

**Interrelationships Between Unobservable Inputs *–*** In addition to the sensitivities of fair value measurements to changes in each unobservable input in isolation, as reflected in the table above, interrelationships between these inputs may also exist, such that a change in one unobservable input may give rise to a change in another, or multiple, inputs. Examples of such interrelationships for significant internally-priced Level 3 assets and liabilities are as follows:

*Corporate Securities* – The rate used to discount future cash flows reflects current risk-free rates plus credit and liquidity spread requirements that market participants would use to value an asset. The discount rate may be influenced by many factors, including market cycles, expectations of default, collateral, term and asset complexity. Each of these factors can influence discount rates, either in isolation, or in response to other factors. During weaker economic cycles, as the expectations of default increases, credit spreads widen, which results in a decrease in fair value.

*Insurance Liabilities, at fair value* – The Company expects efficient benefit utilization and withdrawal rates to generally be correlated with lapse rates. However, behavior is highly dependent on the facts and circumstances surrounding the individual contractholder, such as their liquidity needs or tax situation, which could drive lapse behavior independent of other contractholder behavior assumptions. To the extent that more efficient contractholder behavior results in greater in-the-moneyness at the contract level, lapse rates may decline for those contracts. Similarly, to the extent that increases in equity volatility are correlated with overall declines in the capital markets, lapse rates may decline as contracts become more in-the-money.

**Changes in Level 3 Assets and Liabilities –** The following tables describe changes in fair values of Level 3 assets and liabilities, by reportable segment, and in the aggregate. In addition, the following tables include the portion of gains or losses included in income attributable to unrealized gains or losses related to those assets and liabilities still held at the end of their respective periods. When a determination is made to classify assets and liabilities within Level 3, the determination is based on significance of the unobservable inputs in the overall fair value measurement. All transfers are based on changes in the observability of the valuation inputs, including the availability of pricing service information that the Company can validate. Transfers into Level 3 are generally the result of unobservable inputs utilized within valuation methodologies and the use of indicative broker quotes for assets that were previously valued using observable inputs. Transfers out of Level 3 are generally due to the use of observable inputs in valuation methodologies as well as the availability of pricing service information for certain assets that the Company can validate.

------

[**Table of Contents**](#i21731b18eb5542d2b57e39e6ba9ccb3d_7)

**Fortitude Life Insurance & Annuity Company**

**Notes to Unaudited Interim Consolidated Financial Statements** 

---

| | | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| | **Three Months Ended June 30, 2025** | **Three Months Ended June 30, 2025** | **Three Months Ended June 30, 2025** | **Three Months Ended June 30, 2025** | **Three Months Ended June 30, 2025** | **Three Months Ended June 30, 2025** | **Three Months Ended June 30, 2025** | **Three Months Ended June 30, 2025** | **Three Months Ended June 30, 2025** | **Three Months Ended June 30, 2025** | **Three Months Ended June 30, 2025** |
| | **Fair Value, beginning of period** | **Total realized and unrealized gains (losses)** | **Purchases** | **Sales** | **Issuances** | **Settlements** | **Other** | **Transfers into Level 3** | **Transfers out of Level 3** | **Fair Value, end of period** | **Change in unrealized gains (losses) for assets still held (1)** |
| | **(in millions)** | **(in millions)** | **(in millions)** | **(in millions)** | **(in millions)** | **(in millions)** | **(in millions)** | **(in millions)** | **(in millions)** | **(in millions)** | **(in millions)** |
| **Retained Business** | | | | | | | | | | | |
| &nbsp;&nbsp;Fixed maturity securities |  |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;U.S. corporate private securities | $272 | $2 | $— | $— | $— | $(30) | $25 | $— | $— | $269 | $— |
| &nbsp;&nbsp;&nbsp;&nbsp;Foreign corporate private securities | 65 | 3 |  |  |  |  |  |  |  | 68 | 2 |
| &nbsp;&nbsp;&nbsp;&nbsp;Asset-backed securities | 69 |  | 10 |  |  | (2) | (25) |  |  | 52 |  |
| &nbsp;&nbsp;Mortgage loans |  |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Residential mortgage loans | 266 |  | 32 |  |  | (22) |  |  |  | 276 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Commercial mortgage loans | 77 | 1 |  |  |  |  |  |  |  | 78 | 1 |
| **Ceded Business** |  |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;U.S. corporate private securities | 1 |  |  |  |  |  |  |  |  | 1 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Asset-backed securities | 9 |  |  |  |  | (2) |  |  |  | 7 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Foreign corporate private securities | 4 |  | 3 |  |  | (3) |  |  |  | 4 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Deposit asset | 352 | (10) |  |  |  |  |  |  |  | 342 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Reinsurance recoverables | 198 | (25) |  |  |  |  |  |  |  | 173 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Net modified coinsurance receivable (payable) | (156) | 11 |  |  |  |  |  |  |  | (145) |  |

---

------

[**Table of Contents**](#i21731b18eb5542d2b57e39e6ba9ccb3d_7)

**Fortitude Life Insurance & Annuity Company**

**Notes to Unaudited Interim Consolidated Financial Statements** 

---

| | | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| | **Six Months Ended June 30, 2025** | **Six Months Ended June 30, 2025** | **Six Months Ended June 30, 2025** | **Six Months Ended June 30, 2025** | **Six Months Ended June 30, 2025** | **Six Months Ended June 30, 2025** | **Six Months Ended June 30, 2025** | **Six Months Ended June 30, 2025** | **Six Months Ended June 30, 2025** | **Six Months Ended June 30, 2025** | **Six Months Ended June 30, 2025** |
| | **Fair Value, beginning of year** | **Total realized and unrealized gains (losses)** | **Purchases** | **Sales** | **Issuances** | **Settlements** | **Other** | **Transfers into Level 3** | **Transfers out of Level 3** | **Fair Value, end of period** | **Change in unrealized gains (losses) for assets still held (1)** |
| | **(in millions)** | **(in millions)** | **(in millions)** | **(in millions)** | **(in millions)** | **(in millions)** | **(in millions)** | **(in millions)** | **(in millions)** | **(in millions)** | **(in millions)** |
| **Retained Business** | | | | | | | | | | | |
| &nbsp;&nbsp;Fixed maturity securities |  |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;U.S. corporate private securities | $271 | $3 | $— | $— | $— | $(30) | $25 | $— | $— | $269 | $3 |
| &nbsp;&nbsp;&nbsp;&nbsp;Foreign corporate private securities | 64 | 4 |  |  |  |  |  |  |  | 68 | 3 |
| &nbsp;&nbsp;&nbsp;&nbsp;Residential mortgage-backed securities | 3 |  |  |  |  | (3) |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Asset-backed securities | 70 | 1 | 10 |  |  | (4) | (25) |  |  | 52 | 1 |
| &nbsp;&nbsp;Mortgage loans |  |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Residential mortgage loans | 286 | (5) | 35 |  |  | (40) |  |  |  | 276 | (5) |
| &nbsp;&nbsp;&nbsp;&nbsp;Commercial mortgage loans | 78 |  |  |  |  |  |  |  |  | 78 |  |
| **Ceded Business** |  |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;U.S. corporate private securities | 1 |  |  |  |  |  |  |  |  | 1 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Asset-backed securities | 11 |  |  |  |  | (4) |  |  |  | 7 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Foreign corporate private securities | 4 |  | 7 |  |  | (7) |  |  |  | 4 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Deposit asset | 364 | (22) |  |  |  |  |  |  |  | 342 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Reinsurance recoverables | 163 | 10 |  |  |  |  |  |  |  | 173 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Net modified coinsurance receivable (payable) | (145) |  |  |  |  |  |  |  |  | (145) |  |

---

------

[**Table of Contents**](#i21731b18eb5542d2b57e39e6ba9ccb3d_7)

**Fortitude Life Insurance & Annuity Company**

**Notes to Unaudited Interim Consolidated Financial Statements** 

---

| | | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| | **Three Months Ended June 30, 2024** | **Three Months Ended June 30, 2024** | **Three Months Ended June 30, 2024** | **Three Months Ended June 30, 2024** | **Three Months Ended June 30, 2024** | **Three Months Ended June 30, 2024** | **Three Months Ended June 30, 2024** | **Three Months Ended June 30, 2024** | **Three Months Ended June 30, 2024** | **Three Months Ended June 30, 2024** | **Three Months Ended June 30, 2024** |
| | **Fair Value, beginning of period** | **Total realized and unrealized gains (losses)** | **Purchases** | **Sales** | **Issuances** | **Settlements** | **Other** | **Transfers into Level 3** | **Transfers out of Level 3** | **Fair Value, end of period** | **Change in unrealized gains (losses) for assets still held (1)** |
| | **(in millions)** | **(in millions)** | **(in millions)** | **(in millions)** | **(in millions)** | **(in millions)** | **(in millions)** | **(in millions)** | **(in millions)** | **(in millions)** | **(in millions)** |
| **Retained Business** | | | | | | | | | | | |
| Fixed maturity securities |  |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;U.S. corporate private securities | $271 | $(4) | $— | $— | $— | $— | $— | $— | $— | $267 | $(2) |
| &nbsp;&nbsp;&nbsp;Foreign corporate private securities | 57 | (1) |  |  |  |  |  |  |  | 56 | (1) |
| &nbsp;&nbsp;&nbsp;Residential mortgage-backed securities | 5 |  |  |  |  |  |  |  |  | 5 |  |
| &nbsp;&nbsp;Asset-backed securities | 258 |  | 4 |  |  | (3) |  |  |  | 259 |  |
| Mortgage loans |  |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Residential mortgage loans | 348 | (2) | 3 |  |  | (44) |  |  |  | 305 | (4) |
| &nbsp;&nbsp;&nbsp;Commercial mortgage loans | 77 |  |  |  |  |  |  |  |  | 77 | (1) |
| **Ceded Business** |  |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;U.S. corporate private securities | 1 |  | 1 |  |  |  |  |  |  | 2 |  |
| &nbsp;&nbsp;Asset-backed securities | 28 |  |  |  |  | (2) |  |  | (10) | 16 |  |
| &nbsp;&nbsp;Deposit asset | 426 | (21) |  |  |  |  | (1) |  |  | 404 |  |
| &nbsp;&nbsp;Reinsurance recoverables | 155 | (4) |  |  |  |  |  |  |  | 151 |  |
| &nbsp;&nbsp;Net modified coinsurance receivable (payable) | (72) | (56) |  |  |  |  |  |  |  | (128) |  |

---

------

[**Table of Contents**](#i21731b18eb5542d2b57e39e6ba9ccb3d_7)

**Fortitude Life Insurance & Annuity Company**

**Notes to Unaudited Interim Consolidated Financial Statements** 

---

| | | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| | **Six Months Ended June 30, 2024** | **Six Months Ended June 30, 2024** | **Six Months Ended June 30, 2024** | **Six Months Ended June 30, 2024** | **Six Months Ended June 30, 2024** | **Six Months Ended June 30, 2024** | **Six Months Ended June 30, 2024** | **Six Months Ended June 30, 2024** | **Six Months Ended June 30, 2024** | **Six Months Ended June 30, 2024** | **Six Months Ended June 30, 2024** |
| | **Fair Value, beginning of year** | **Total realized and unrealized gains (losses)** | **Purchases** | **Sales** | **Issuances** | **Settlements** | **Other** | **Transfers into Level 3** | **Transfers out of Level 3** | **Fair Value, end of period** | **Change in unrealized gains (losses) for assets still held (1)** |
| | **(in millions)** | **(in millions)** | **(in millions)** | **(in millions)** | **(in millions)** | **(in millions)** | **(in millions)** | **(in millions)** | **(in millions)** | **(in millions)** | **(in millions)** |
| **Retained Business** | | | | | | | | | | | |
| &nbsp;&nbsp;Fixed maturity securities |  |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;U.S. corporate private securities | $244 | $(1) | $24 | $— | $— | $— | $— | $— | $— | $267 | $— |
| &nbsp;&nbsp;&nbsp;&nbsp;Foreign corporate private securities | 56 |  |  |  |  |  |  |  |  | 56 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Residential mortgage-backed securities | 5 |  |  |  |  |  |  |  |  | 5 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Asset-backed securities | 246 | (1) | 18 |  |  | (4) |  |  |  | 259 | (2) |
| &nbsp;&nbsp;Mortgage loans |  |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Residential mortgage loans | 361 | 3 | 7 |  |  | (66) |  |  |  | 305 | 1 |
| &nbsp;&nbsp;&nbsp;&nbsp;Commercial mortgage loans | 76 | 1 |  |  |  |  |  |  |  | 77 |  |
| **Ceded Business** |  |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;U.S. corporate private securities | 1 |  | 1 |  |  |  |  |  |  | 2 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Asset-backed securities |  |  | 28 |  |  | (2) |  |  | (10) | 16 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Foreign corporate private securities | 1 |  |  |  |  | (1) |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Short-term investments | 4 |  | 3 |  |  | (7) |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Deposit asset | 438 | (31) |  |  |  |  | (3) |  |  | 404 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Reinsurance recoverables | 206 | (55) |  |  |  |  |  |  |  | 151 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Net modified coinsurance receivable (payable) | (78) | (50) |  |  |  |  |  |  |  | (128) |  |

---

(1)Unrealized gains or losses related to assets still held at the end of the period do not include amortization or accretion of premiums and discounts.

------

[**Table of Contents**](#i21731b18eb5542d2b57e39e6ba9ccb3d_7)

**Fortitude Life Insurance & Annuity Company**

**Notes to Unaudited Interim Consolidated Financial Statements** 

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| | **Three Months Ended June 30, 2025** | **Three Months Ended June 30, 2025** | **Three Months Ended June 30, 2025** | **Three Months Ended June 30, 2025** | **Three Months Ended June 30, 2025** | **Three Months Ended June 30, 2025** | **Three Months Ended June 30, 2025** |
| | | **Incurred losses** | **Incurred losses** | | | | |
| |<br>**Fair Value, beginning of period** | **Reduction in estimates of ultimate losses** | **Increase in estimates of ultimate losses** |<br>**Change in fair value (discount rate)** |<br>**Fee income and paid losses** |<br>**Other** |<br>**Fair Value, end of period** |
| | **(in millions)** | **(in millions)** | **(in millions)** | **(in millions)** | **(in millions)** | **(in millions)** | **(in millions)** |
| Insurance Liabilities |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Retained Business | $2481 | $(380) | $163 | $(31) | $39 | $(1) | $2271 |
| &nbsp;&nbsp;&nbsp;&nbsp;Ceded Business | 2143 | (75) | 141 | 1 | 7 |  | 2217 |

---

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| | **Six Months Ended June 30, 2025** | **Six Months Ended June 30, 2025** | **Six Months Ended June 30, 2025** | **Six Months Ended June 30, 2025** | **Six Months Ended June 30, 2025** | **Six Months Ended June 30, 2025** | **Six Months Ended June 30, 2025** |
| | | **Incurred losses** | **Incurred losses** | | | | |
| |<br>**Fair Value, beginning of year** | **Reduction in estimates of ultimate losses** | **Increase in estimates of ultimate losses** |<br>**Change in fair value (discount rate)** |<br>**Fee income and paid losses** |<br>**Other** |<br>**Fair Value, end of period** |
| | **(in millions)** | **(in millions)** | **(in millions)** | **(in millions)** | **(in millions)** | **(in millions)** | **(in millions)** |
| Insurance Liabilities |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Retained Business | $2196 | $(471) | $387 | $40 | $119 | $— | $2271 |
| &nbsp;&nbsp;&nbsp;&nbsp;Ceded Business | 2184 | (184) | 168 | 33 | 16 |  | 2217 |

---

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| | **Three Months Ended June 30, 2024** | **Three Months Ended June 30, 2024** | **Three Months Ended June 30, 2024** | **Three Months Ended June 30, 2024** | **Three Months Ended June 30, 2024** | **Three Months Ended June 30, 2024** | **Three Months Ended June 30, 2024** |
| | | **Incurred losses** | **Incurred losses** | | | | |
| |<br>**Fair Value, beginning of period** | **Reduction in estimates of ultimate losses** | **Increase in estimates of ultimate losses** |<br>**Change in fair value (discount rate)** |<br>**Fee income and paid losses** |<br>**Other** |<br>**Fair Value, end of period** |
| | **(in millions)** | **(in millions)** | **(in millions)** | **(in millions)** | **(in millions)** | **(in millions)** | **(in millions)** |
| Insurance Liabilities |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Retained Business | $2342 | $(121) | $105 | $(137) | $44 | $— | $2233 |
| &nbsp;&nbsp;&nbsp;Ceded Business | 2203 | (96) | 59 | (14) | 1 |  | 2153 |

---

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| | **Six Months Ended June 30, 2024** | **Six Months Ended June 30, 2024** | **Six Months Ended June 30, 2024** | **Six Months Ended June 30, 2024** | **Six Months Ended June 30, 2024** | **Six Months Ended June 30, 2024** | **Six Months Ended June 30, 2024** |
| | | **Incurred losses** | **Incurred losses** | | | | |
| |<br>**Fair Value, beginning of year** | **Reduction in estimates of ultimate losses** | **Increase in estimates of ultimate losses** |<br>**Change in fair value (discount rate)** |<br>**Fee income and paid losses** |<br>**Other** |<br>**Fair Value, end of period** |
| | **(in millions)** | **(in millions)** | **(in millions)** | **(in millions)** | **(in millions)** | **(in millions)** | **(in millions)** |
| Insurance Liabilities |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Retained Business | $2835 | $(506) | $213 | $(382) | $73 | $— | $2233 |
| &nbsp;&nbsp;&nbsp;Ceded Business | 2168 | (192) | 218 | (45) | 4 |  | 2153 |

---

"Total realized and unrealized gains (losses)" related to our level 3 assets are included in earnings in Investment gains (losses). Activity within our level 3 liabilities is primarily recognized in earnings within Policyholder benefits and changes in fair value of insurance liabilities. However, the changes related to the Company's own-credit risk, included in "Change in fair value (discount rate)" above, is recorded in other comprehensive income (loss). Additionally, as noted in the following section, there are other components of the change in fair value that are recognized separately in the consolidated statements of operations.

------

[**Table of Contents**](#i21731b18eb5542d2b57e39e6ba9ccb3d_7)

**Fortitude Life Insurance & Annuity Company**

**Notes to Unaudited Interim Consolidated Financial Statements** 

**Change in Fair Value of Insurance Contracts**

The components of the change in fair value of our insurance contracts are reported in several line items within Revenues and Benefits and expenses in our consolidated statements of operations and comprehensive income (loss). The revenue items include Premiums, Policy charges and fee income, and Asset management and service fees. The Benefits and expenses items include Policyholders' benefits and changes in fair value of insurance liabilities and Commission expense. Policyholder benefits and changes in fair value of insurance liabilities includes the following changes in fair value of the assets and liabilities related to the insurance contracts for which we have elected the fair value option:

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | **June 30, 2025** | **June 30, 2025** | **June 30, 2025** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** |
| | **Retained Business** | **Ceded Business** | **Total** | **Retained Business** | **Ceded Business** | **Total** |
| | **(in millions)** | **(in millions)** | **(in millions)** | **(in millions)** | **(in millions)** | **(in millions)** |
| **Assets:** | | | | | | |
| &nbsp;&nbsp;&nbsp;Reinsurance recoverables | $— | $10 | $10 | $— | $(43) | $(43) |
| &nbsp;&nbsp;&nbsp;Modified coinsurance receivable |  | 54 | 54 |  | 87 | 87 |
| &nbsp;&nbsp;&nbsp;Deposit asset |  | (22) | (22) |  | (74) | (74) |
| **Liabilities:** |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Insurance liabilities | $75 | $33 | $108 | $(639) | $16 | $(623) |

---

Changes in insurance liabilities attributable to the Company's own-credit risk are recorded in other comprehensive income (loss). Changes in the modified coinsurance payable are reported in Policyholder benefits and changes in fair value of insurance liabilities, however, they are not included in the above chart as they relate to the investment portfolio within the modified coinsurance agreement.

**Fair Value of Financial Instruments**

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. The financial instruments presented below are reported at carrying value on the Company's Consolidated Statements of Financial Position. In some cases the carrying amount equals or approximates fair value. For additional information regarding the carrying amounts and fair value amounts of the below financial instruments, see Notes 2 and 4, respectively, to the Financial Statements included in the Company's Annual Report on Form 10-K for the year ended December 31, 2024.

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | **June 30, 2025** | **June 30, 2025** | **June 30, 2025** | **June 30, 2025** | **June 30, 2025** |
| | **Fair Value** | **Fair Value** | **Fair Value** | **Fair Value** | **Carrying Amount** |
| | **Level 1** | **Level 2** | **Level 3** | **Total** | **Total** |
| | **(in millions)** | **(in millions)** | **(in millions)** | **(in millions)** | **(in millions)** |
| **Assets:** | | | | | |
| &nbsp;&nbsp;&nbsp;Accrued investment income | $— | $64 | $— | $64 | $64 |
| &nbsp;&nbsp;&nbsp;Other invested assets - Other | 3 |  | 11 | 14 | 14 |
| **Liabilities:** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Liabilities associated with secured borrowing arrangements |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Repurchase agreements | $— | $1383 | $— | $1383 | $1367 |

---

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** |
| | **Fair Value** | **Fair Value** | **Fair Value** | **Fair Value** | **Carrying Amount** |
| | **Level 1** | **Level 2** | **Level 3** | **Total** | **Total** |
| | **(in millions)** | **(in millions)** | **(in millions)** | **(in millions)** | **(in millions)** |
| **Assets:** | | | | | |
| &nbsp;&nbsp;&nbsp;Accrued investment income | $— | $58 | $— | $58 | $58 |
| &nbsp;&nbsp;&nbsp;Other invested assets - Other | 26 |  | 11 | 37 | 37 |
| **Liabilities:** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Liabilities associated with secured borrowing arrangements |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Repurchase agreements | $— | $1220 | $— | $1220 | $1200 |

---

------

[**Table of Contents**](#i21731b18eb5542d2b57e39e6ba9ccb3d_7)

**Fortitude Life Insurance & Annuity Company**

**Notes to Unaudited Interim Consolidated Financial Statements** 

**5.&nbsp;&nbsp;&nbsp;&nbsp;INVESTMENTS**

***Other Invested Assets***

The following table sets forth the composition of "Other invested assets," as of the dates indicated.

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | **June 30, 2025** | **June 30, 2025** | **June 30, 2025** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** |
| | **Retained Business** | **Ceded Business** | **Total** | **Retained Business** | **Ceded Business** | **Total** |
| | **(in millions)** | **(in millions)** | **(in millions)** | **(in millions)** | **(in millions)** | **(in millions)** |
| LPs/LLCs: |  |  |  |  |  |  |
| &nbsp;&nbsp;Equity method: |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Private equity | $— | $1 | $1 | $— | $1 | $1 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Real estate-related |  | 3 | 3 |  | 3 | 3 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Subtotal equity method |  | 4 | 4 |  | 4 | 4 |
| &nbsp;&nbsp;Fair value: |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Private equity | 23 |  | 23 | 27 |  | 27 |
| **Total LPs/LLCs** | 23 | 4 | 27 | 27 | 4 | 31 |
| **Derivative instruments** | 20 | 355 | 375 | 14 | 313 | 327 |
| **Other** | 14 |  | 14 | 37 |  | 37 |
| &nbsp;&nbsp;&nbsp;&nbsp;**Total other invested assets** | $57 | $359 | $416 | $78 | $317 | $395 |

---

***Accrued Investment Income***

The following table sets forth the composition of "Accrued investment income," as of the dates indicated:

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | **June 30, 2025** | **June 30, 2025** | **June 30, 2025** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** |
| | **Retained Business** | **Ceded Business** | **Total** | **Retained Business** | **Ceded Business** | **Total** |
| | **(in millions)** | **(in millions)** | **(in millions)** | **(in millions)** | **(in millions)** | **(in millions)** |
| Fixed maturity securities | $46 | $13 | $59 | $43 | $12 | $55 |
| Mortgage loans | 3 |  | 3 | 1 |  | 1 |
| Short-term investments and cash equivalents | 2 |  | 2 | 2 |  | 2 |
| &nbsp;&nbsp;Total accrued investment income | $51 | $13 | $64 | $46 | $12 | $58 |

---

The aggregate fair value of mortgage loans that were 90 days or more past due and in non-accrual status were $1 million and $3 million as of June 30, 2025 and December 31, 2024, respectively.

------

[**Table of Contents**](#i21731b18eb5542d2b57e39e6ba9ccb3d_7)

**Fortitude Life Insurance & Annuity Company**

**Notes to Unaudited Interim Consolidated Financial Statements** 

***Net Investment Income***

The following tables set forth "Net investment income" by investment type, for the periods indicated:

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | **Three Months Ended June 30** | **Three Months Ended June 30** | **Three Months Ended June 30** | **Three Months Ended June 30** | **Three Months Ended June 30** | **Three Months Ended June 30** |
| | **2025** | **2025** | **2025** | **2024** | **2024** | **2024** |
| | **Retained Business** | **Ceded Business** | **Total** | **Retained Business** | **Ceded Business** | **Total** |
| | **(in millions)** | **(in millions)** | **(in millions)** | **(in millions)** | **(in millions)** | **(in millions)** |
| Fixed maturity securities | $56 | $15 | $71 | $62 | $13 | $75 |
| Mortgage loans | 6 |  | 6 | 8 |  | 8 |
| Other invested assets |  |  |  |  | 1 | 1 |
| Short-term investments and cash equivalents | 11 | 1 | 12 | 8 | 2 | 10 |
| &nbsp;&nbsp;&nbsp;Gross investment income | 73 | 16 | 89 | 78 | 16 | 94 |
| Less: investment expenses (1) | (18) |  | (18) | (19) |  | (19) |
| &nbsp;&nbsp;&nbsp;&nbsp;Net investment income | $55 | $16 | $71 | $59 | $16 | $75 |

---

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | **Six Months Ended June 30** | **Six Months Ended June 30** | **Six Months Ended June 30** | **Six Months Ended June 30** | **Six Months Ended June 30** | **Six Months Ended June 30** |
| | **2025** | **2025** | **2025** | **2024** | **2024** | **2024** |
| | **Retained Business** | **Ceded Business** | **Total** | **Retained Business** | **Ceded Business** | **Total** |
| | **(in millions)** | **(in millions)** | **(in millions)** | **(in millions)** | **(in millions)** | **(in millions)** |
| Fixed maturity securities | $103 | $30 | $133 | $122 | $25 | $147 |
| Mortgage loans | 14 |  | 14 | 16 |  | 16 |
| Other invested assets | 1 |  | 1 | 3 | (1) | 2 |
| Short-term investments and cash equivalents | 21 | 2 | 23 | 14 | 6 | 20 |
| &nbsp;&nbsp;&nbsp;Gross investment income | 139 | 32 | 171 | 155 | 30 | 185 |
| Less: investment expenses (2) | (35) |  | (35) | (40) |  | (40) |
| &nbsp;&nbsp;&nbsp;&nbsp;Net investment income | $104 | $32 | $136 | $115 | $30 | $145 |

---

(1) For the three months ended June 30, 2025 and 2024, investment expenses within the Retained Business includes $16 million and $18 million, respectively, of expense related to liabilities associated with repurchase agreements.

(2) For the six months ended June 30, 2025 and 2024, investment expenses within the Retained Business includes $31 million and $33 million, respectively, of expense related to liabilities associated with repurchase agreements.

The activity included in the above charts include interest income on investments for which we have elected the fair value option, where applicable.

***Investment Gains (Losses), Net*** 

The following tables set forth "Investment gains (losses), net" by investment type, for the periods indicated:

---

| | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| | **Three Months Ended June 30, 2025** | **Three Months Ended June 30, 2025** | **Three Months Ended June 30, 2025** | **Three Months Ended June 30, 2025** | **Three Months Ended June 30, 2025** | **Three Months Ended June 30, 2025** | **Three Months Ended June 30, 2025** | **Three Months Ended June 30, 2025** | **Three Months Ended June 30, 2025** |
| | **Retained Business** | **Retained Business** | **Retained Business** | **Ceded Business** | **Ceded Business** | **Ceded Business** | **Total Business** | **Total Business** | **Total Business** |
| | **Unrealized** | **Realized** | **Total** | **Unrealized** | **Realized** | **Total** | **Unrealized** | **Realized** | **Total** |
| | **(in millions)** | **(in millions)** | **(in millions)** | **(in millions)** | **(in millions)** | **(in millions)** | **(in millions)** | **(in millions)** | **(in millions)** |
| Fixed maturity securities | $25 | $(49) | $(24) | $8 | $— | $8 | $33 | $(49) | $(16) |
| Derivatives |  | (324) | (324) |  | 105 | 105 |  | (219) | (219) |
| &nbsp;&nbsp;&nbsp;Total | $25 | $(373) | $(348) | $8 | $105 | $113 | $33 | $(268) | $(235) |

---

------

[**Table of Contents**](#i21731b18eb5542d2b57e39e6ba9ccb3d_7)

**Fortitude Life Insurance & Annuity Company**

**Notes to Unaudited Interim Consolidated Financial Statements** 

---

| | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| | **Six Months Ended June 30, 2025** | **Six Months Ended June 30, 2025** | **Six Months Ended June 30, 2025** | **Six Months Ended June 30, 2025** | **Six Months Ended June 30, 2025** | **Six Months Ended June 30, 2025** | **Six Months Ended June 30, 2025** | **Six Months Ended June 30, 2025** | **Six Months Ended June 30, 2025** |
| | **Retained Business** | **Retained Business** | **Retained Business** | **Ceded Business** | **Ceded Business** | **Ceded Business** | **Total Business** | **Total Business** | **Total Business** |
| | **Unrealized** | **Realized** | **Total** | **Unrealized** | **Realized** | **Total** | **Unrealized** | **Realized** | **Total** |
| | **(in millions)** | **(in millions)** | **(in millions)** | **(in millions)** | **(in millions)** | **(in millions)** | **(in millions)** | **(in millions)** | **(in millions)** |
| Fixed maturity securities | $65 | $(50) | $15 | $20 | $— | $20 | $85 | $(50) | $35 |
| Mortgage loans | (5) |  | (5) |  |  |  | (5) |  | (5) |
| Derivatives |  | (136) | (136) |  | 43 | 43 |  | (93) | (93) |
| &nbsp;&nbsp;&nbsp;Total | $60 | $(186) | $(126) | $20 | $43 | $63 | $80 | $(143) | $(63) |

---

---

| | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| | **Three Months Ended June 30, 2024** | **Three Months Ended June 30, 2024** | **Three Months Ended June 30, 2024** | **Three Months Ended June 30, 2024** | **Three Months Ended June 30, 2024** | **Three Months Ended June 30, 2024** | **Three Months Ended June 30, 2024** | **Three Months Ended June 30, 2024** | **Three Months Ended June 30, 2024** |
| | **Retained Business** | **Retained Business** | **Retained Business** | **Ceded Business** | **Ceded Business** | **Ceded Business** | **Total Business** | **Total Business** | **Total Business** |
| | **Unrealized** | **Realized** | **Total** | **Unrealized** | **Realized** | **Total** | **Unrealized** | **Realized** | **Total** |
| | **(in millions)** | **(in millions)** | **(in millions)** | **(in millions)** | **(in millions)** | **(in millions)** | **(in millions)** | **(in millions)** | **(in millions)** |
| Fixed maturity securities | $(75) | $(1) | $(76) | $(4) | $— | $(4) | $(79) | $(1) | $(80) |
| Mortgage loans | (5) | 2 | (3) |  |  |  | (5) | 2 | (3) |
| Derivatives |  | (100) | (100) |  | 36 | 36 |  | (64) | (64) |
| &nbsp;&nbsp;&nbsp;Total | $(80) | $(99) | $(179) | $(4) | $36 | $32 | $(84) | $(63) | $(147) |

---

---

| | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| | **Six Months Ended June 30, 2024** | **Six Months Ended June 30, 2024** | **Six Months Ended June 30, 2024** | **Six Months Ended June 30, 2024** | **Six Months Ended June 30, 2024** | **Six Months Ended June 30, 2024** | **Six Months Ended June 30, 2024** | **Six Months Ended June 30, 2024** | **Six Months Ended June 30, 2024** |
| | **Retained Business** | **Retained Business** | **Retained Business** | **Ceded Business** | **Ceded Business** | **Ceded Business** | **Total Business** | **Total Business** | **Total Business** |
| | **Unrealized** | **Realized** | **Total** | **Unrealized** | **Realized** | **Total** | **Unrealized** | **Realized** | **Total** |
| | **(in millions)** | **(in millions)** | **(in millions)** | **(in millions)** | **(in millions)** | **(in millions)** | **(in millions)** | **(in millions)** | **(in millions)** |
| Fixed maturity securities | $(152) | $— | $(152) | $(14) | $— | $(14) | $(166) | $— | $(166) |
| Mortgage loans |  | 2 | 2 |  |  |  |  | 2 | 2 |
| Derivatives |  | (454) | (454) |  | 150 | 150 |  | (304) | (304) |
| &nbsp;&nbsp;&nbsp;Total | $(152) | $(452) | $(604) | $(14) | $150 | $136 | $(166) | $(302) | $(468) |

---

***Repurchase Agreements***

In the normal course of business, FLIAC sells securities under agreements to repurchase. These balances are recorded within "Liabilities associated with secured borrowing arrangements" in the consolidated statements of financial position.

The following table sets forth, by type, the securities that we have agreed to repurchase, all of which are contained in the Retained Business. The below amounts represent the remaining contractual maturities of our repurchase agreements for the periods indicated

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| | **June 30, 2025** | **June 30, 2025** | **June 30, 2025** | **June 30, 2025** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** |
| | **Up to 30 days** | **30-90<br>days** | **Greater<br>than 90<br>days** | **Total** | **Up to 30 days** | **30-90<br>days** | **Greater<br>than 90<br>days** | **Total** |
| | **(in millions)** | **(in millions)** | **(in millions)** | **(in millions)** | **(in millions)** | **(in millions)** | **(in millions)** | **(in millions)** |
| U.S. corporate public securities | $316 | $397 | $654 | $1367 | $203 | $495 | $502 | $1200 |

---

The market value of the securities posted as collateral under the repurchase agreements was $1,325 million and $1,224 million as of June 30, 2025 and December 31, 2024, respectively.

During the six months ended June 30, 2025, and 2024 the Company received (returned) a net $4 million and $(46) million, respectively, of fixed maturity securities to/from counterparties, on a non-cash basis, related to collateral for liabilities associated with repurchase agreements contained within the Retained Business.

------

[**Table of Contents**](#i21731b18eb5542d2b57e39e6ba9ccb3d_7)

**Fortitude Life Insurance & Annuity Company**

**Notes to Unaudited Interim Consolidated Financial Statements** 

**6.&nbsp;&nbsp;&nbsp;&nbsp;DERIVATIVES, HEDGING AND OFFSETTING**

***Types of Derivative Instruments and Derivative Strategies***

The Company utilizes various derivative instruments and strategies to manage its risk. Commonly used derivative instruments include but are not necessarily limited to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Interest rate contracts: swaps, swaptions, futures, forwards, options, caps and floors

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Equity contracts: futures, options, and total return swaps

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Foreign exchange contracts: futures, options, forwards and swaps

See below for information on these contracts and the related strategies.

***Interest Rate Contracts***

Interest rate swaps and options are used by the Company to reduce risks from changes in interest rates, manage interest rate exposures arising from mismatches between assets and liabilities and to hedge against changes in their values it owns or anticipates acquiring or selling.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Interest rate swaps may be attributed to specific assets or liabilities or to a portfolio of assets or liabilities. The Company agrees with counterparties to exchange, at specified intervals, the difference between fixed-rate and floating-rate interest amounts calculated by reference to an agreed upon notional principal amount.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Interest rate options include swaptions and interest rate floors. Swaptions are options that give the holder the right but not obligation to enter into a specified interest rate swap. The Company uses these instruments for protection against the direction of future interest rates. Interest rate floors set an effective rate of interest on underlying reference rate and is used by the Company to provide protection against potential future declines in rates.

***Equity Contracts***

Equity options, total return swaps, and futures are used by the Company to manage its exposure to the equity markets which impacts the value of assets and liabilities it owns or anticipates acquiring or selling.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Equity options are contracts which will settle in cash based on differentials in the underlying indices at the time of exercise and the strike price. The Company uses combinations of purchases and sales of equity index options to hedge the effects of adverse changes in equity indices within a predetermined range.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Total return swaps are contracts whereby the Company agrees with counterparties to exchange, at specified intervals, the difference between the return on an asset (or market index) and Secured Overnight Financing Rate ("SOFR") plus an associated funding spread based on a notional amount. The Company generally uses total return swaps to hedge the effect of adverse changes in equity indices.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• In standardized exchange-traded equity futures transactions, the Company purchases or sells a specified number of contracts, the values of which are determined by the daily market values underlying referenced equity indices. The Company enters into exchange-traded futures with regulated futures commission's merchants who are members of a trading exchange.

***Foreign Exchange Contracts***

Currency derivatives, which are primarily comprised of currency swaps, are used by the Company to reduce risks from changes in currency exchange rates with respect to investments denominated in foreign currencies that the Company either holds or intends to acquire or sell.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Under currency swaps, the Company agrees with counterparties to exchange, at specified intervals, the difference between one currency and another at an exchange rate and calculated by reference to an agreed principal amount. Generally, the principal amount of each currency is exchanged at the beginning and termination of the currency swap by each party.

------

[**Table of Contents**](#i21731b18eb5542d2b57e39e6ba9ccb3d_7)

**Fortitude Life Insurance & Annuity Company**

**Notes to Unaudited Interim Consolidated Financial Statements** 

***Primary Risks Managed and/or Accessed by Derivatives***

The tables below provide a summary, by reporting segment, of the gross notional amount and fair value of derivative contracts by the primary underlying risks. Many derivative instruments contain multiple underlying risks. The fair value amounts below represent the value of derivative contracts prior to taking into account the netting effects of master netting agreements and cash collateral.

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | **June 30, 2025** | **June 30, 2025** | **June 30, 2025** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** |
| **Primary Underlying Risk/Instrument Type** | **Gross <br>Notional Values/Units** | **Fair Value** | **Fair Value** | **Gross <br>Notional Values/Units** | **Fair Value** | **Fair Value** |
| **Primary Underlying Risk/Instrument Type** | **Gross <br>Notional Values/Units** | **Assets** | **Liabilities** | **Gross <br>Notional Values/Units** | **Assets** | **Liabilities** |
| | **(in millions)** | **(in millions)** | **(in millions)** | **(in millions)** | **(in millions)** | **(in millions)** |
| **Retained Business** | | | | | | |
| &nbsp;&nbsp;**Interest Rate** | | | | | | |
| &nbsp;&nbsp;Interest rate swaps | $64485 | $612 | $(1006) | $40347 | $384 | $(822) |
| &nbsp;&nbsp;Interest rate options | 215 |  | (23) | 215 |  | (22) |
| &nbsp;&nbsp;**Equity** |  |  |  |  |  |  |
| &nbsp;&nbsp;Equity futures | (382) | 5 | (30) | (799) | 36 | (9) |
| &nbsp;&nbsp;Total return swaps | 1234 | 9 | (249) | 1079 | 89 | (67) |
| &nbsp;&nbsp;Equity options | 2960 | 62 | (199) | 3460 | 117 | (167) |
| &nbsp;&nbsp;**Currency/Interest Rate** |  |  |  |  |  |  |
| &nbsp;&nbsp;Foreign currency swaps | 50 |  |  | 46 | 3 |  |
| **Total Derivatives, Retained Business** | 68562 | 688 | (1507) | 44348 | 629 | (1087) |
| **Ceded Business** |  |  |  |  |  |  |
| &nbsp;&nbsp;**Interest Rate** |  |  |  |  |  |  |
| &nbsp;&nbsp;Interest rate swaps | 285 | 8 | (3) | 285 | 15 | (7) |
| &nbsp;&nbsp;**Equity** |  |  |  |  |  |  |
| &nbsp;&nbsp;Total return swaps | 386 |  | (4) | 250 | 1 |  |
| &nbsp;&nbsp;Equity options | 2468 | 376 | (26) | 2468 | 327 | (27) |
| **Currency/Interest Rate** |  |  |  |  |  |  |
| &nbsp;&nbsp;Foreign currency swaps | 30 |  |  | 33 | 4 |  |
| **Total Derivatives, Ceded Business** | 3169 | 384 | (33) | 3036 | 347 | (34) |
| **Total Derivatives (1)** | $71731 | $1072 | $(1540) | $47384 | $976 | $(1121) |

---

(1) &nbsp;&nbsp;&nbsp;&nbsp;Recorded in "Other invested assets" and "Other liabilities" in the Consolidated Statements of Financial Position.

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[**Table of Contents**](#i21731b18eb5542d2b57e39e6ba9ccb3d_7)

**Fortitude Life Insurance & Annuity Company**

**Notes to Unaudited Interim Consolidated Financial Statements** 

***Offsetting Assets and Liabilities***

The following table presents recognized derivative instruments and liabilities associated with repurchase agreements, that are offset in the Consolidated Statements of Financial Position, and/or are subject to an enforceable master netting arrangement or similar agreement, irrespective of whether they are offset in the Consolidated Statements of Financial Position.

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | **June 30, 2025** | **June 30, 2025** | **June 30, 2025** | **June 30, 2025** | **June 30, 2025** | **June 30, 2025** |
| | **Gross<br>Amounts of<br>Recognized<br>Financial<br>Instruments** | **Gross Amounts Offset in the<br> Statements of Financial Position** | **Gross Amounts Offset in the<br> Statements of Financial Position** | **Net Amounts<br>Presented in<br>the Statements<br>of Financial<br>Position**  | **Financial<br>Instruments/<br>Collateral(1)** | **Net<br>Amount** |
| | | **Counterparty Netting** | **Cash Collateral** | | | |
| | **(in millions)** | **(in millions)** | **(in millions)** | **(in millions)** | **(in millions)** | **(in millions)** |
| **Offsetting of Financial Assets:** | | | | | | |
| Derivatives |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Retained Business | $688 | $(652) | $(16) | $20 | $— | $20 |
| &nbsp;&nbsp;&nbsp;&nbsp;Ceded Business | 384 | (25) | (4) | 355 |  | 355 |
| &nbsp;&nbsp;&nbsp;&nbsp;**Total** | $1072 | $(677) | $(20) | $375 | $— | $375 |
| **Offsetting of Financial Liabilities:** |  |  |  |  |  |  |
| Derivatives |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Retained Business | $1507 | $(652) | $(768) | $87 | $(87) | $— |
| &nbsp;&nbsp;&nbsp;&nbsp;Ceded Business | 33 | (25) | (4) | 4 |  | 4 |
| &nbsp;&nbsp;&nbsp;&nbsp;**Total** | $1540 | $(677) | $(772) | $91 | $(87) | $4 |
| Repurchase agreements | $1367 | $— | $— | $1367 | $(1367) | $— |

---

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** |
| ` | **Gross<br>Amounts of<br>Recognized<br>Financial<br>Instruments** | **Gross Amounts Offset in the Statements of Financial Position** | **Gross Amounts Offset in the Statements of Financial Position** | **Net Amounts Presented in the Statements of Financial Position** | **Financial<br>Instruments/<br>Collateral(1)** | **Net<br>Amount** |
|  |  | **Counterparty Netting** | **Cash Collateral** |  |  |  |
|  | **(in millions)** | **(in millions)** | **(in millions)** | **(in millions)** | **(in millions)** | **(in millions)** |
| **Offsetting of Financial Assets:** |  |  |  |  |  |  |
| Derivatives |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Retained Business | $629 | $(491) | $(124) | $14 | $— | $14 |
| &nbsp;&nbsp;&nbsp;&nbsp;Ceded Business | 347 | (34) |  | 313 |  | 313 |
| &nbsp;&nbsp;&nbsp;&nbsp;**Total** | $976 | $(525) | $(124) | $327 | $— | $327 |
| **Offsetting of Financial Liabilities:** |  |  |  |  |  |  |
| Derivatives |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Retained Business | $1087 | $(491) | $(510) | $86 | $(86) | $— |
| &nbsp;&nbsp;&nbsp;&nbsp;Ceded Business | 34 | (34) |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;**Total** | $1121 | $(525) | $(510) | $86 | $(86) | $— |
| Repurchase agreements | $1200 | $— | $— | $1200 | $(1200) | $— |

---

(1)Amounts exclude the excess of collateral received/pledged from/to the counterparty.

------

[**Table of Contents**](#i21731b18eb5542d2b57e39e6ba9ccb3d_7)

**Fortitude Life Insurance & Annuity Company**

**Notes to Unaudited Interim Consolidated Financial Statements** 

The Company is exposed to credit-related losses in the event of non-performance by counterparties to financial derivative transactions with a positive fair value. FLIAC manages credit risk by (i) entering into derivative transactions with highly rated major international financial institutions and other creditworthy counterparties governed by master netting agreement, as applicable; (ii) trading through central clearing and OTC parties; (iii) obtaining collateral, such as cash and securities, when appropriate; and (iv) setting limits on single-party credit exposures which are subject to periodic management review. Substantially all of the Company's derivative agreements have zero thresholds which require daily full collateralization by the party in a liability position.

For repurchase agreements, the Company monitors the value of the securities and maintains collateral, as appropriate, to protect against credit exposure. Where the Company has entered into repurchase agreements with the same counterparty, in the event of default, the Company would generally be permitted to exercise right of offset. For additional information on the Company's accounting policy for repurchase agreements, see Note 2 to the Financial Statements included in the Company's Annual Report on Form 10-K for the year ended December 31, 2024.

***Classification of Derivatives Activity***

The Company does not designate any of its derivatives as instruments that qualify for hedge accounting treatment. Accordingly, all realized and unrealized changes in the fair value of derivatives are recorded in current earnings within either "Investment gains (losses), net" or "Other income" on the consolidated statements of operations.

The following tables provide the financial statement classification and impact of derivatives, by segment.

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | **Three Months Ended June 30** | **Three Months Ended June 30** | **Three Months Ended June 30** | **Three Months Ended June 30** | **Three Months Ended June 30** | **Three Months Ended June 30** |
| | **2025** | **2025** | **2025** | **2024** | **2024** | **2024** |
| | **Investment gains (losses), net** | **Other income (loss)** | **Total** | **Investment gains (losses), net** | **Other income (loss)** | **Total** |
| | **(in millions)** | **(in millions)** | **(in millions)** | **(in millions)** | **(in millions)** | **(in millions)** |
| **Retained Business** |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Interest Rate | $(16) | $— | $(16) | $(19) | $— | $(19) |
| &nbsp;&nbsp;&nbsp;Currency/Interest Rate |  | (5) | (5) |  | 1 | 1 |
| &nbsp;&nbsp;&nbsp;Credit |  |  |  | 1 |  | 1 |
| &nbsp;&nbsp;&nbsp;Equity | (308) |  | (308) | (82) |  | (82) |
| &nbsp;&nbsp;&nbsp;&nbsp;Total, Retained Business | (324) | (5) | (329) | (100) | 1 | (99) |
| **Ceded Business** |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Interest Rate | 1 |  | 1 | 1 |  | 1 |
| &nbsp;&nbsp;&nbsp;Currency/Interest Rate | (3) |  | (3) | 1 |  | 1 |
| &nbsp;&nbsp;&nbsp;Equity | 107 |  | 107 | 34 |  | 34 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total, Ceded Business | 105 |  | 105 | 36 |  | 36 |
| **Total** | $(219) | $(5) | $(224) | $(64) | $1 | $(63) |

---

------

[**Table of Contents**](#i21731b18eb5542d2b57e39e6ba9ccb3d_7)

**Fortitude Life Insurance & Annuity Company**

**Notes to Unaudited Interim Consolidated Financial Statements** 

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | **Six Months Ended June 30** | **Six Months Ended June 30** | **Six Months Ended June 30** | **Six Months Ended June 30** | **Six Months Ended June 30** | **Six Months Ended June 30** |
| | **2025** | **2025** | **2025** | **2024** | **2024** | **2024** |
| | **Investment gains (losses), net** | **Other income** | **Total** | **Investment gains (losses), net** | **Other income** | **Total** |
| | **(in millions)** | **(in millions)** | **(in millions)** | **(in millions)** | **(in millions)** | **(in millions)** |
| **Retained Business** |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Interest Rate | $(1) | $— | $(1) | $(93) | $— | $(93) |
| &nbsp;&nbsp;&nbsp;Currency/Interest Rate |  | (8) | (8) |  | 3 | 3 |
| &nbsp;&nbsp;&nbsp;Credit |  |  |  | 3 |  | 3 |
| &nbsp;&nbsp;&nbsp;Equity | (135) |  | (135) | (364) |  | (364) |
| &nbsp;&nbsp;&nbsp;&nbsp;Total, Retained Business | (136) | (8) | (144) | (454) | 3 | (451) |
| **Ceded Business** |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Interest Rate | (1) |  | (1) | 3 |  | 3 |
| &nbsp;&nbsp;&nbsp;Currency/Interest Rate | (3) |  | (3) | 1 |  | 1 |
| &nbsp;&nbsp;&nbsp;Equity | 47 |  | 47 | 146 |  | 146 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total, Ceded Business | 43 |  | 43 | 150 |  | 150 |
| **Total** | $(93) | $(8) | $(101) | $(304) | $3 | $(301) |

---

**7.&nbsp;&nbsp;&nbsp;&nbsp;INCOME TAXES**

The Company uses a full year projected effective tax rate approach to calculate taxes. In addition, certain items impacting total income tax expense are recorded in the periods in which they occur. The projected effective tax rate is the ratio of projected "Income tax expense (benefit)" divided by projected "Income (loss) from operations before income taxes."

For the three months ended June 30, 2025, the Company's income tax provision amounted to an income tax benefit of approximately $62 million, or 200.0 percent of loss from operations before income taxes. For the six months ended June 30, 2025, the Company's income tax provision amounted to an income tax benefit of approximately $66 million, or 111.9% of loss from operations before income taxes. The effective tax rate differed from the U.S. statutory tax rate of 21 percent in each period due to a projected annual pre-tax loss for 2025 and certain permanent tax deductions related to dividends received deductions and transfer pricing.

For the three months ended June 30, 2024, the Company's income tax provision amounted to an income tax benefit of approximately $3 million, or 9.1 percent of loss from operations before income tax. For the six months ended June 30, 2024, the Company's income tax provision amounted to an income tax expense of approximately $21 million or 15.4 percent of income from operations before income taxes. The effective tax rate differed from the U.S. statutory tax rate of 21 percent in each period due primarily to non-taxable investment income, intercompany cost allocations, and deductible foreign taxes paid and accrued.

**Valuation Allowance on Deferred Tax Assets**

The application of U.S. GAAP requires the evaluation of the recoverability of deferred tax assets and establishment of a valuation allowance, if necessary, to reduce the deferred tax asset to an amount that is more likely than not expected to be realized, including an assessment of the character of future income necessary to realize a deferred tax asset. As of June 30, 2025 and December 31, 2024, the Company had a valuation allowance of $54 million and $50 million, respectively, regarding realized and unrealized capital losses on our fixed maturity securities portfolio. A portion of the deferred tax asset relates to unrealized capital 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. The amount of the deferred tax asset considered realizable may be adjusted if projections of future taxable income, including the character of that taxable income during the requisite carryforward period, are updated or if objective negative evidence exists that outweighs the positive evidence. The increase in the valuation allowance is primarily driven by realized losses on certain of our fixed maturity securities.

**Other Tax Matters**

In July 2025, H.R.1, known as the "One Big Beautiful Bill Act" was signed into law. H.R.1 includes a broad range of tax reform provisions that are expected to impact businesses across numerous sectors of the U.S. economy. We are currently evaluating the full potential impacts of H.R.1 on the Company but do not expect it will have a material impact on its financial position or results of operations in 2025.

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[**Table of Contents**](#i21731b18eb5542d2b57e39e6ba9ccb3d_7)

**Fortitude Life Insurance & Annuity Company**

**Notes to Unaudited Interim Consolidated Financial Statements** 

 **8.&nbsp;&nbsp;&nbsp;&nbsp;EQUITY**

***Dividends to Parent***

During the first quarter of 2024, a $150 million dividend was approved by the Company's board of directors, $75 million of which was considered an ordinary dividend and not subject to approval by the Arizona Department of Insurance and Financial Institutions ("DIFI") prior to payment and was accrued as of March 31, 2024. The other $75 million was conditioned upon the Company receiving written approval from the Arizona DIFI prior to payment and was not accrued for as of March 31, 2024. In April 2024, the Company received written approval from the Arizona DIFI and the entire $150 million dividend was distributed in cash to FGH in the second quarter of 2024.

During the three and six months ended June 30, 2025, the Company did not pay dividends to FGH and there were no dividends approved by the Company's board of directors.

***Accumulated Other Comprehensive Income (Loss) ("AOCI")***

AOCI represents the cumulative Other Comprehensive Income items that are reported separate from net income and detailed on the consolidated statements of operation and comprehensive income (loss). AOCI is comprised entirely of changes in own-credit risk related to insurance liabilities. See the consolidated statements of equity for additional information regarding this activity.&nbsp;&nbsp;&nbsp;&nbsp;

**9.&nbsp;&nbsp;&nbsp;&nbsp;COMMITMENTS AND CONTINGENT LIABILITIES**

***Commitments***

As of June 30, 2025 and December 31, 2024, the Company had commitments totaling $185 million and $224 million, respectively, to purchase private fixed maturity securities and alternative investments. These amounts include unfunded commitments that are not unconditionally cancellable. See Note 10 for further information regarding certain commitments to related parties.

***Contingent Liabilities***

On an ongoing basis, the Company and its regulators review its operations including, but not limited to, sales and other customer interface procedures and practices, and procedures for meeting obligations to its customers and other parties. These reviews may result in the modification or enhancement of processes or the imposition of other action plans, including concerning management oversight, sales and other customer interface procedures and practices, and the timing or computation of payments to customers and other parties. In certain cases, if appropriate, the Company may offer customers or other parties remediation and may incur charges, including the cost of such remediation, administrative costs and regulatory fines.

The Company is subject to the laws and regulations of states and other jurisdictions concerning the identification, reporting and escheatment of unclaimed or abandoned funds, and is subject to audit and examination for compliance with these requirements. For additional discussion of these matters, see "Litigation and Regulatory Matters" below.

It is possible that the results of operations or the cash flows of the Company in a particular quarterly or annual period could be materially affected as a result of payments in connection with the matters discussed above or other matters depending, in part, upon the results of operations or cash flows for such period. Management believes, however, that ultimate payments in connection with these matters, after consideration of applicable reserves and rights to indemnification, should not have a material adverse effect on the Company's financial position.

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[**Table of Contents**](#i21731b18eb5542d2b57e39e6ba9ccb3d_7)

**Fortitude Life Insurance & Annuity Company**

**Notes to Unaudited Interim Consolidated Financial Statements** 

***Litigation and Regulatory Matters***

The Company is subject to legal and regulatory actions in the ordinary course of its business. Pending legal and regulatory actions include proceedings specific to the Company and proceedings generally applicable to business practices in the industry in which it operates. The Company is subject to class action lawsuits and other litigation involving a variety of issues and allegations involving sales practices, claims payments and procedures, premium charges, policy servicing and breach of fiduciary duty to customers. The Company is also subject to litigation arising out of its general business activities, such as its investments, contracts, leases and labor and employment relationships, including claims of discrimination and harassment, and could be exposed to claims or litigation concerning certain business or process patents. In addition, the Company, along with other participants in the businesses in which it engages, may be subject from time to time to investigations, examinations and inquiries, in some cases industry-wide, concerning issues or matters upon which such regulators have determined to focus. It is possible that legal and regulatory actions may result in certain parties seeking large and/or indeterminate amounts, including punitive or exemplary damages. The outcome of litigation or a regulatory matter, and the amount or range of potential loss at any particular time, is often inherently uncertain.

The Company establishes accruals for litigation and regulatory matters when it is probable that a loss has been incurred and the amount of that loss can be reasonably estimated. For litigation and regulatory matters where a loss may be reasonably possible, but not probable, or is probable but not reasonably estimable, no accrual is established, but the matter, if material, is disclosed. The Company estimates that as of June 30, 2025, the aggregate range of reasonably possible losses in excess of recoveries from unaffiliated indemnitors regarding litigation and regulatory matters, for which such an estimate currently can be made, is not considered to be material and no accrual has been made regarding such matters. This estimate is not an indication of expected loss, if any, or the Company's maximum possible loss exposure on such matters. The Company reviews relevant information with respect to its litigation and regulatory matters on a quarterly and annual basis and updates its accruals, disclosures and estimates of reasonably possible loss based on such reviews.

***Summary***

The Company's litigation and regulatory matters are subject to many uncertainties, and given their complexity and scope, their outcome cannot be predicted. It is possible that the Company's results of operations or cash flows in a particular quarterly or annual period could be materially affected by an ultimate unfavorable resolution of pending litigation and regulatory matters depending, in part, upon the results of operations or cash flows for such period. In light of the unpredictability of the Company's litigation and regulatory matters, it is also possible that in certain cases an ultimate unfavorable resolution of one or more pending litigation or regulatory matters could have a material adverse effect on the Company's financial statements. Management believes, however, that, based on information currently known to it, the ultimate outcome of all pending litigation and regulatory matters, after consideration of applicable reserves and rights to indemnification, is not likely to have a material adverse effect on the Company's financial statements.

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[**Table of Contents**](#i21731b18eb5542d2b57e39e6ba9ccb3d_7)

**Fortitude Life Insurance & Annuity Company**

**Notes to Unaudited Interim Consolidated Financial Statements** 

**10.&nbsp;&nbsp;&nbsp;&nbsp;RELATED PARTY TRANSACTIONS**

The Company has transactions and relationships with affiliates. Although we seek to ensure that these transactions and relationships are fair and reasonable, it is possible that the terms of these transactions are not the same as those that would result from transactions among unrelated parties.

***Expense Charges and Allocations***

The majority of the Company's expenses are allocations or charges from FGH. These expenses primarily relate to general and administrative expenses which include accounting, actuarial, risk management, and data processing services. FGH also provides the Company with personnel and certain other services. The allocation of costs for other services are based on estimated level of usage, transactions or time incurred in providing the respective services. During the three and six months ended June 30, 2025, FLIAC was allocated $8 million and $17 million, respectively, of costs for these services. During the three and six months ended June 30, 2024, FLIAC was allocated $12 million and $21 million, respectively, of costs for these services.

***Affiliated Investment and Advisory Activities***

FLIAC is affiliated with The Carlyle Group Inc. ("Carlyle"), whereby Carlyle, through an affiliated investment fund has a 38.53% equity investment in its parent, FGH. In addition, FLIAC entered into an investment management and consulting services agreement with an affiliate of Carlyle.

Certain of Carlyle's affiliates also provide investment management services for FLIAC pursuant to investment management agreements. Investment management fees are charged based on a percentage of assets under management. As of June 30, 2025 and December 31, 2024, assets under management had a market value of $382 million and $490 million, respectively, and were comprised primarily of private credit fixed income assets. FLIAC recognized $6 million and $12 million of investment income on such assets during the three and six months ended June 30, 2025, respectively. FLIAC recognized $11 million and $22 million of net investment income on such assets during the three and six months ended June 30, 2024, respectively.

In connection with the investment management agreements, as of June 30, 2025, and December 31, 2024 FLIAC had unfunded commitments of $1 million and $44 million, respectively, to fund private investments where one or more Carlyle entities serves as general partner to the fund.

***Affiliated Asset Transfers***

The Company may participate in affiliated asset transfers with its parent and affiliates. Book and market value differences for trades with its parent and affiliates are recognized within "Investment gains (losses), net" on the consolidated statements of operations. The table below shows affiliated asset trades for the six months ended June 30, 2025. There were no affiliated asset transfers during the six months ended June 30, 2024.

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| **Affiliate** | **Date** | **Transaction** | **Security Type** | **Fair Value** | **Book Value** | **Investment Gains (Losses), net** |
| | | | | **(in millions)** | **(in millions)** | **(in millions)** |
| Fortitude Re Investments, LLC | January 2025 | Sale | Fixed Maturity Securities | $13 | $13 | $— |

---

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[**Table of Contents**](#i21731b18eb5542d2b57e39e6ba9ccb3d_7)

**Fortitude Life Insurance & Annuity Company**

**Notes to Unaudited Interim Consolidated Financial Statements** 

**11. SEPARATE ACCOUNTS**

***Separate Account Assets***

The aggregate fair value of assets, by major investment category, supporting separate accounts is as follows:

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | **June 30, 2025** | **June 30, 2025** | **June 30, 2025** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** |
| | **Retained Business** | **Ceded Business** | **Total Business** | **Retained Business** | **Ceded Business** | **Total Business** |
| | **(in millions)** | **(in millions)** | **(in millions)** | **(in millions)** | **(in millions)** | **(in millions)** |
| Mutual funds: |  |  |  |  |  |  |
| &nbsp;&nbsp;Equity | $14047 | $1366 | $15413 | $14256 | $1378 | $15634 |
| &nbsp;&nbsp;Fixed income | 6399 | 622 | 7021 | 6497 | 628 | 7125 |
| &nbsp;&nbsp;Other | 13 | 1 | 14 | 89 | 9 | 98 |
| Total mutual funds | $20459 | $1989 | $22448 | $20842 | $2015 | $22857 |

---

***Separate Account Liabilities***

The balances of and changes in separate account liabilities, at fair value, are as follows:

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | **Six Months Ended June 30,** | **Six Months Ended June 30,** | **Six Months Ended June 30,** | **Six Months Ended June 30,** | **Six Months Ended June 30,** | **Six Months Ended June 30,** |
| | **2025** | **2025** | **2025** | **2024** | **2024** | **2024** |
| | **Retained Business** | **Ceded Business** | **Total Business** | **Retained Business** | **Ceded Business** | **Total Business** |
| | **(in millions)** | **(in millions)** | **(in millions)** | **(in millions)** | **(in millions)** | **(in millions)** |
| Balance, beginning of year | $20842 | $2015 | $22857 | $21800 | $2070 | $23870 |
| &nbsp;&nbsp;Deposits | 15 | 2 | 17 | 17 | 2 | 19 |
| &nbsp;&nbsp;Investment performance | 1156 | 113 | 1269 | 1387 | 134 | 1521 |
| &nbsp;&nbsp;Policy charges | (209) | (17) | (226) | (224) | (18) | (242) |
| &nbsp;&nbsp;Surrenders and withdrawals | (1342) | (141) | (1483) | (1393) | (125) | (1518) |
| &nbsp;&nbsp;Benefit payments | (25) | (1) | (26) | (24) | (2) | (26) |
| &nbsp;&nbsp;Net transfers from general account | 22 | 18 | 40 | 35 | 16 | 51 |
| Balance, end of period | $20459 | $1989 | $22448 | $21598 | $2077 | $23675 |
| Cash surrender value | $20437 | $1986 | $22423 | $21573 | $2073 | $23646 |

---

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[**Table of Contents**](#i21731b18eb5542d2b57e39e6ba9ccb3d_7)

**Fortitude Life Insurance & Annuity Company**

**Notes to Unaudited Interim Consolidated Financial Statements** 

**12.&nbsp;&nbsp;&nbsp;&nbsp;CREDIT AND LIQUIDITY AGREEMENTS**

***Letter of Credit Facilities***

In the second quarter of 2025, the Company was added as a participant to two uncommitted bilateral letter of credit agreements to support its collateral requirements, which allows it to issue up to $300 million under these facilities. Both letter of credit agreements were initially established for certain of the Company's affiliates. Both agreements contain certain restrictive and maintenance covenants customary for facilities of this type. The ability to utilize the facilities is also subject to the ability and willingness of the banks to issue the letter of credit. The Company is currently in compliance with all covenants associated with these facilities. The Company has not utilized either credit facility since being added as a participant.

The Company is also eligible to issue a standby letter of credit with another bank, allowing issuance of up to $100 million until its expiration in December 2027. The facility contains certain restrictive and maintenance covenants customary for facilities of this type. In addition, borrowings are not contingent on the Company's credit ratings nor subject to material adverse change clauses, however, the Company will be required to maintain a minimum Company Action Level ("CAL") Risk-based Capital ratio of 250% to maintain the agreement. As of June 30, 2025, there were no amounts outstanding under this credit facility.

The maximum board-approved overall capacity of the letter of credit program is $1,500 million for all participants. The maximum board-approved amount for letters of credit that can be issued under this program for FLIAC is $500 million.

***Intercompany Liquidity Agreement***

FLIAC entered into an intercompany liquidity agreement with FGH that allows the Company to borrow or loans funds of up to $300 million to meet the short-term liquidity and other capital needs of itself and FGH and its affiliates.

During the second quarter of 2025, the Company loaned $50 million of funds to FGH under the agreement. The loan, which has a three month contractual maturity, remained outstanding as of June 30, 2025.

The Company did not borrow any funds under the agreement during the three and six months ended June 30, 2025 and neither borrowed or loaned any funds during the three and six months ended June 30, 2024.

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**<u>Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations</u>**

Fortitude Life Insurance & Annuity Company and its wholly-owned subsidiary (collectively, "FLIAC" or the "Company"), with its principal offices in Jersey City, New Jersey, is a wholly-owned subsidiary of Fortitude Group Holdings, LLC ("FGH").

The following analysis of our financial condition and results of operations should be read in conjunction with the MD&A, the "Risk Factors" section, and the audited financial statements included in the Company's Annual Report on Form 10-K for the year ended December 31, 2024, as well as the statements under "Forward-Looking Statements" and the Unaudited Interim Consolidated Financial Statements included elsewhere in this Quarterly Report on Form 10-Q.

**Overview**

The Company was established in 1969 and has been a provider of annuity contracts for the individual market in the United States. The Company's products have been sold primarily to individuals to provide for long-term savings and retirement needs and to address the economic impact of premature death, estate planning concerns and supplemental retirement income.

The Company has sold a wide array of annuities, including deferred and immediate variable annuities with (1) fixed interest rate allocation options, subject to a market value adjustment, that are registered with the United States Securities and Exchange Commission (the "SEC"), and (2) fixed-rate allocation options subject to a limited market value adjustment or no market value adjustment and not registered with the SEC. The Company ceased offering these products.

***Impact of a Changing Interest Rate Environment***

As a financial services company, market interest rates are a key driver of our results of operations and financial condition. Changes in interest rates can affect our results of operations and/or our financial condition in several ways, including favorable or adverse impacts to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• investment-related activity, including: investment income returns, net interest margins, net investment spread results, new money rates, mortgage loan prepayments and bond redemptions;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the recoverability of deferred tax assets related to losses on our fixed maturity securities portfolio;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• hedging costs and other risk mitigation activities;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• insurance reserve levels and market experience true-ups;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• customer account values, including their impact on fee income;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• product design features, crediting rates and sales mix; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• policyholder behavior, including surrender or withdrawal activity.

For more information on interest rate risks, see "Risk Factors—Market Risk" included in the Company's Annual Report on Form 10-K for the year ended December 31, 2024.

***Revenues and Expenses***

The Company earns revenues principally from contract fees, mortality and expense fees, and asset administration fees from annuity and investment products, all of which primarily result from the sale and servicing of annuity products. The Company also earns net investment income from the investment of general account and other funds. The Company's operating expenses principally consist of annuity benefit guarantees provided, reserves established for anticipated future annuity benefit guarantees, and costs of managing risk related to these products. The Company's operating expenses also include general business expenses, reinsurance expense allowances, and commissions and other costs of selling and servicing the various products it sold.

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**Accounting Policies & Pronouncements**

**Application of Critical Accounting Estimates**

The preparation of financial statements in conformity with U.S. GAAP requires the application of accounting policies that often involve a significant degree of judgment. Management on an ongoing basis, reviews estimates and assumptions used in the preparation of financial statements. If management determines that modifications in assumptions and estimates are appropriate given current facts and circumstances, the Company's results of operations and financial position as reported in the Unaudited Consolidated Interim Financial Statements could change significantly.

Management believes the accounting policies relating to the following areas are most dependent on the application of estimates and assumptions and require management's most difficult, subjective, or complex judgments:

• Insurance liabilities;

• Valuation of investments, including derivatives; and

• Taxes on income, including valuation allowances

***Recent Accounting Pronouncements***

Changes to U.S. GAAP are established by the Financial Accounting Standards Board ("FASB") in the form of an Accounting Standards Update ("ASU") to the Accounting Standards Codification. We consider the applicability and impact of all ASUs in our preparation of the financial statements. ASUs listed below include those that have been adopted during the current fiscal year and/or those that have been issued but not yet adopted as of the date of this filing. ASUs not listed below were assessed and determined to be either not applicable or not material.

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| | | | |
|:---|:---|:---|:---|
| **Standard** | **Description** | **Effective date and method of adoption** | **Effect on the financial statements or other significant matters** |
| *ASU 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures* | This ASU improved reportable segment disclosures, primarily through enhanced disclosures regarding a company's significant segment expenses and certain other items. The update also required expanded disclosures regarding the chief operating decision maker ("CODM") and the information they are provided when assessing segment performance and allocating resources. | The Company adopted the update for interim reporting periods beginning January 1, 2025 using the retrospective method.<br>The Company adopted this update for annual disclosures on January 1, 2024 using the retrospective method. | This adoption of the update for both interim and annual periods expanded the Company's disclosures but did not have an impact on its financial position or results of operations. <br>See Note 3 herein for further information regarding the expanded interim disclosures. <br>See Note 3 within the Company's Annual Report on Form 10-K for the year ended December 31, 2024 for further information regarding the expanded annual disclosures. |

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***ASUs issued but not yet adopted as of June 30, 2025:***

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| | | | |
|:---|:---|:---|:---|
| **Standard** | **Description** | **Effective date and method of adoption** | **Effect on the financial statements or other significant matters** |
| *ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures* | This ASU improves income tax disclosure requirements by requiring 1. the use of consistent categories and greater disaggregation of information in the rate reconciliation and 2. income taxes paid disaggregated by jurisdiction. | Effective for annual reporting periods beginning January 1, 2025, and is required to be applied prospectively with the option of retrospective application. Early adoption is permitted. | The update is expected to expand the Company's disclosures but will not have an impact on the Company's financial position or results of operations. |
| *ASU 2024-03, Income Statement - Reporting Comprehensive Income (Topic 220): Expense Disaggregation Disclosures* | This ASU requires additional disclosures regarding certain expense types included in the income statement. The requirements include disclosure of the amounts associated with 1. purchases of inventory, 2. employee compensation, 3. depreciation and 4. intangible asset amortization. These disclosures should be included in each relevant expense caption. Furthermore, entities must disclose specific expenses, gains, or losses already required under US GAAP, offer a qualitative description of amounts not separately quantified, and present the total amount of selling expenses along with a definition of these expenses in their annual reports. | Effective for annual reporting periods beginning January 1, 2027, and interim reporting periods beginning January 1, 2028, using either the prospective or retrospective method. Early adoption is permitted | The Company is currently evaluating the potential impact of this update on its financial position, results of operations, and disclosures. |

---

**Segment and Product Overview** 

Our business is comprised of two major blocks of in-force policies, which we refer to as the "Retained Business" and the "Ceded Business". The Retained Business consists of variable annuity products with guaranteed lifetime withdrawal benefit features as well as smaller blocks of variable annuity products with certain other living benefit and death benefit features. The Retained Business also includes variable universal life and fixed payout annuity products. The Retained Business is actively managed by FLIAC management and the Company retains the full economic benefits and risks. The Retained Business consists of variable annuity contracts originated between 1993 – 2010. These products allow the holder to direct investments into certain separate account funds to receive tax deferred build-up within the contract. Most of the contracts have optional living benefit riders, commonly known as guaranteed minimum withdrawal benefits, which entitle the holder to elect to withdraw a guaranteed amount from the contract while alive, irrespective of the balance in their separate account. Almost all of the contracts also offer a guaranteed amount payable to a beneficiary upon the death of the holder, which is commonly known as a guaranteed minimum death benefit.

The Ceded Business represents certain business (primarily registered index linked-annuities and fixed annuities, which includes fixed indexed and fixed deferred annuities, and other variable annuities) where 100 percent of the assets and liabilities have been fully ceded to The Prudential Insurance Company of America ("Prudential Insurance") and Pruco Life Insurance Company ("Pruco Life") under existing coinsurance and modified coinsurance agreements. The Ceded Business will continue to impact certain line items within the Company's financial statements but will not have a material impact to stockholders' equity or net income and will represent the economic impact assumed by Prudential Insurance and Pruco Life.

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**Changes in Financial Position**

The following is a discussion regarding changes in the financial position of the Company by reportable segment.

***Retained Business***

Assets decreased $100 million to $25,493 million at June 30, 2025 from $25,593 million at December 31, 2024. The decrease was primarily driven by lower separate account assets resulting from surrenders and withdrawals, which were partially offset by higher asset values due to favorable equity market movements. Mostly offsetting the decline was an increase in income tax receivables resulting from higher income tax benefits and an increase in the fair value of fixed maturity securities resulting from a decline in interest rates.

Liabilities decreased $139 million to $24,305 million at June 30, 2025 from $24,444 million at December 31, 2024. The decrease was primarily driven by lower separate account liabilities, corresponding to the decrease in separate account assets, as discussed above, partially offset by higher liabilities associated with secured borrowing arrangements and an increase in the fair value of insurance liabilities resulting from a decline in interest rates.

Equity increased $39 million to $1,188 million at June 30, 2025 from $1,149 million at December 31, 2024, driven by the year-to-date impacts of net income of $7 million and the $32 million net-of-tax improvement in accumulated other comprehensive loss related to movements in our own-credit risk (OCR) on the fair value of insurance liabilities.

***Ceded Business***

Assets increased $28 million to $4,374 million at June 30, 2025 from $4,346 million at December 31, 2024. The increase was driven by higher derivative fair values related to equity options, partially offset by lower separate account assets resulting from surrenders and withdrawals, which were partially offset by higher asset values due to favorable equity market movements.

Liabilities increased $28 million to $4,374 million at June 30, 2025 from $4,346 million at December 31, 2024. The increase was primarily driven by a higher fair value of insurance liabilities resulting from a decline in interest rates, partially offset by lower separate account liabilities which correspond with the increase in separate accounts noted above.

There was no equity within our Ceded Business at both June 30, 2025 and December 31, 2024 as the assets are fully offset by the liabilities.

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 **Results of Operations** 

**INCOME (LOSS) FROM OPERATIONS BEFORE INCOME TAXES**

***Quarter-to-Date Comparison to Prior Period***

**Retained Business**

Loss from operations before income taxes was $31 million for the three months ended June 30, 2025 compared to a loss from operations before income taxes of $33 million for the three months ended June 30, 2024. The change was driven by a more favorable relative net impact from equity market movements during the three months ended June 30, 2025 on the fair value of both investments and insurance liabilities, excluding changes in OCR. Mostly offsetting that favorable net impact was a decline in net investment income resulting from lower invested asset levels and lower policy charges and fee income resulting from the expected run off of the business.

**Ceded Business**

There was no impact to the income from operations before income taxes as all revenues and expenses are ceded to Prudential Insurance or Pruco Life.

***Year-to-Date Comparison to Prior Period***

**Retained Business**

Loss from operations before income taxes was $59 million for the six months ended June 30, 2025 compared to income from operations before income taxes of $136 million for the six months ended June 30, 2024. The change was driven primarily by an unfavorable net impact from interest rate and equity market movements during the six months ended June 30, 2025 on the fair value of both investments and insurance liabilities, excluding changes in OCR. Also contributing to the change was a decline in net investment income resulting from lower invested asset levels and lower policy charges and fee income resulting from the expected run off of the business.

**Ceded Business**

There was no impact to the income from operations before income taxes as all revenues and expenses are ceded to Prudential Insurance or Pruco Life.

**REVENUES, BENEFITS, AND EXPENSES** 

***Quarter-to-Date Comparison to Prior Period***

**Retained Business**

Revenues were $(158) million for the three months ended June 30, 2025 compared to $24 million during the three months ended June 30, 2024. The change was primarily driven by investment losses on equity derivatives resulting from higher equity market movements.

Benefits and expenses were $(127) million for the three months ended June 30, 2025 compared to $57 million during the three months ended June 30, 2024. The change was driven by favorable decreases in the fair value of insurance liabilities, excluding changes in OCR, resulting from higher equity market movements.

**Ceded Business**

There was no impact to the income from operations before income taxes as all revenues and expenses are ceded to Prudential Insurance or Pruco Life.

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***Year-to-Date Comparison to Prior Period***

**Retained Business**

Revenues were $246 million for the six months ended June 30, 2025 compared to $(198) million for the six months ended June 30, 2024. The change was primarily driven by lower losses on equity derivatives resulting from lower comparable increases in equity market movements.

Benefits and expenses were $305 million for the six months ended June 30, 2025 compared to $(334) million for the six months ended June 30, 2024, the change was primarily driven by unfavorable movements in the fair value of insurance liabilities, excluding changes in OCR, resulting from lower comparable increases in equity markets during the six months ended June 30, 2025 relative to the same period of 2024. Also contributing to the change was a decline in interest rates during the six months ended June 30, 2025 compared to an increase in interest rates during the six months ended June 30, 2024.

**Ceded Business**

There was no impact to the income from operations before income taxes as all revenues and expenses are ceded back to Prudential Insurance or Pruco Life.

**Income Taxes**

For information regarding income taxes, see Note 7 to the Consolidated Unaudited Interim Financial Statements.

**Liquidity and Capital Resources** 

This section supplements and should be read in conjunction with "Management's Discussion and Analysis of Financial Condition and Results of Operations—Liquidity and Capital Resources" included in the Company's Annual Report on Form 10-K for the year ended December 31, 2024.

**Overview** 

Liquidity is a measure of a company's ability to generate cash flows sufficient to meet the short-term and long-term cash requirements of the Company. Capital refers to the long-term financial resources available to support the operations of our business, fund business growth, and provide a cushion to withstand adverse circumstances. Our ability to generate and maintain sufficient liquidity and capital depends on the profitability of our business, general economic conditions, our ability to borrow and our access to capital markets.

Effective and prudent liquidity and capital management is a priority across the organization. Management monitors the liquidity of the Company on a daily basis and projects borrowing and capital needs over a multi-year time horizon. We use a Risk Appetite Framework ("RAF") to ensure that all risks taken by the Company aligns with our capacity and willingness to take those risks. The RAF provides a dynamic assessment of capital and liquidity stress impacts and is intended to ensure that sufficient resources are available to absorb those impacts. We believe that our capital and liquidity resources are sufficient to satisfy the capital and liquidity requirements of the Company.

Our businesses are subject to comprehensive regulation and supervision by domestic and international regulators. These regulations currently include requirements (many of which are the subject of ongoing rule-making) relating to capital, leverage, liquidity, stress-testing, overall risk management, credit exposure reporting and credit concentration. For information on these regulatory initiatives and their potential impact on us, see "Business - Regulation" and "Risk Factors" included in the Company's Annual Report on Form 10-K for the year ended December 31, 2024.

**Capital**

We manage FLIAC to regulatory capital levels and utilize the risk-based capital ("RBC") ratio as a primary measure of capital adequacy. RBC is calculated based on statutory financial statements and risk formulas consistent with the practices of the National Association of Insurance Commissioners ("NAIC"). RBC considers, among other things, risks related to the type and quality of the invested assets, insurance-related risks associated with an insurer's products and liabilities, equity market and interest rate risks and general business risks. RBC determines the minimum amount of capital required of an insurer to support

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its operations and underwriting coverage. The ratio of a company's Total Adjusted Capital ("TAC") to RBC is the corresponding RBC ratio. RBC ratio calculations are intended to assist insurance regulators in measuring an insurer's solvency and ability to pay future claims. The reporting of RBC measures is not intended for the purpose of ranking any insurance company or for use in connection with any marketing, advertising or promotional activities, but is available to the public. The Company's capital levels substantially exceed the minimum level required by applicable insurance regulations. Our regulatory capital levels may be affected in the future by changes to the applicable regulations, proposals for which are currently under consideration by both domestic and international insurance regulators.

The regulatory capital level of the Company can be materially impacted by interest rate and equity market fluctuations, changes in the values of derivatives, the level of impairments recorded, and credit quality migration of the investment portfolio, among other items. In addition, the reinsurance of business or the recapture of business subject to reinsurance arrangements due to defaults by, or credit quality migration affecting, the reinsurers or for other reasons could negatively impact regulatory capital levels. The Company's regulatory capital level is also affected by statutory accounting rules, which are subject to change by each applicable insurance regulator.

*Dividends to Parent*

During the first quarter of 2024, a $150 million dividend was approved by the Company's board of directors, $75 million of which was considered an ordinary dividend and not subject to approval by the Arizona Department of Insurance and Financial Institutions ("DIFI") prior to payment and was accrued as of March 31, 2024. The other $75 million was conditioned upon the Company receiving written approval from the Arizona DIFI prior to payment and was not accrued for as of March 31, 2024. In April 2024, the Company received written approval from the Arizona DIFI and the entire $150 million dividend was distributed in cash to FGH in the second quarter of 2024.

During the three and six months ended June 30, 2025, the Company did not pay dividends to FGH and there were no dividends approved by the Company's board of directors.

**Liquidity**

Our liquidity is managed to ensure stable, reliable and cost-effective sources of cash flows to meet all of our obligations. Liquidity is provided by a variety of sources, as described more fully below, including portfolios of liquid assets. Our investment portfolios are integral to the overall liquidity of the Company. We use a projection process for cash flows from operations to ensure sufficient liquidity to meet projected cash outflows, including claims.

Liquidity is measured against internally-developed benchmarks that take into account the characteristics of both the asset portfolio and the liabilities that they support. We consider attributes of the various categories of liquid assets (for example, type of asset and credit quality) in calculating internal liquidity measures to evaluate our liquidity under various stress scenarios, including company-specific and market-wide events. We continue to believe that cash generated by ongoing operations and the liquidity profile of our assets provide sufficient liquidity under reasonably foreseeable stress scenarios.

The principal sources of the Company's liquidity are premiums and certain annuity considerations, investment and fee income, investment maturities, sales of investments, borrowings from its parent and affiliates, and banking relationships through secured or unsecured agreements. The principal uses of that liquidity include benefits, claims, and payments to policyholders and contractholders in connection with surrenders, withdrawals and net policy loan activity. Other uses of liquidity include commissions, general and administrative expenses, purchases of investments, the payment of dividends and returns of capital to the parent company, hedging and reinsurance activity and payments in connection with financing activities.

In managing liquidity, we consider the risk of policyholder and contractholder withdrawals of funds earlier than our assumptions when selecting assets to support these contractual obligations. We also consider the risk of future collateral requirements under stressed market conditions in respect of the derivatives we utilize.

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*Liquid Assets*

Liquid assets include cash and cash equivalents, short-term investments, and fixed maturity securities. As of June 30, 2025 and December 31, 2024, the Company had liquid assets of $5.7 billion and $5.6 billion, respectively, which includes $1.5 billion of modified coinsurance assets contained within the Ceded business, for each respective period. As of June 30, 2025 and December 31, 2024, the portion of liquid assets comprised of cash and cash equivalents and short-term investments was $0.4 billion and $0.6 billion, respectively.

*Liquidity Regarding Hedging Activities*

The hedging portion of our risk management strategy for the Retained Business is being managed within the Company. We enter into a range of exchange-traded, cleared, and other OTC derivatives in order to hedge market sensitive exposures against changes in certain capital market risks. The portion of the risk management strategy comprising the hedging portion requires access to liquidity to meet the Company's payment obligations relating to these derivatives, such as payments for periodic settlements, purchases, maturities and terminations. These liquidity needs can vary materially due to, among other items, changes in interest rates, equity markets, mortality, and policyholder behavior.

The hedging portion of the risk management strategy may also result in derivative-related collateral postings to (when we are in a net pay position) or from (when we are in a net receive position) counterparties. The net collateral position depends on changes in interest rates and equity markets related to the amount of the exposures hedged. Depending on market conditions, the collateral posting requirements can result in material liquidity needs when we are in a net pay position.

***Intercompany Liquidity Agreement***

FLIAC entered into an intercompany liquidity agreement with FGH that allows the Company to borrow or loans funds of up to $300 million to meet the short-term liquidity and other capital needs of itself and FGH and its affiliates.

During the second quarter of 2025, the Company loaned $50 million of funds to FGH under the agreement. The loan, which has a three month contractual maturity, remained outstanding as of June 30, 2025.

The Company did not borrow any funds under the agreement during the three and six months ended June 30, 2025 and neither borrowed or loaned any funds during the three and six months ended June 30, 2024.

***Letter of Credit Facilities***

In the second quarter of 2025, the Company was added as a participant to two uncommitted bilateral letter of credit agreements to support its collateral requirements, which allows it to issue up to $300 million under these facilities. Both letter of credit agreements were initially established for certain of the Company's affiliates. Both agreements contain certain restrictive and maintenance covenants customary for facilities of this type. The ability to utilize the facilities is also subject to the ability and willingness of the banks to issue the letter of credit. The Company is currently in compliance with all covenants associated with these facilities. The Company has not utilized either credit facility since being added as a participant.

The Company is also eligible to issue a standby letter of credit with another bank, allowing issuance of up to $100 million until its expiration in December 2027. The facility contains certain restrictive and maintenance covenants customary for facilities of this type. In addition, borrowings are not contingent on the Company's credit ratings nor subject to material adverse change clauses, however, the Company will be required to maintain a minimum Company Action Level ("CAL") Risk-based Capital ratio of 250% to maintain the agreement. As of June 30, 2025, there were no amounts outstanding under this credit facility.

The maximum board-approved overall capacity of the letter of credit program is $1,500 million for all participants. The maximum board-approved amount for letters of credit that can be issued under this program for FLIAC is $500 million.

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***Secured Borrowing Arrangements***

In the normal course of business, we may enter into repurchase agreements with unaffiliated financial institutions, which are typically large or highly rated, to earn spread income and facilitate trading activity. Under these agreements, the Company transfers securities to the counterparty and receives cash as collateral. The cash received is generally invested in short-term investments and fixed maturity securities.

A liability representing the amount that the securities will be repurchased is recorded in "Liabilities associated with secured borrowing arrangements" in our consolidated statement of financial position. As of June 30, 2025, the liabilities associated with our outstanding repurchase agreements were $1,367 million.

**<u>Item 3. Quantitative and Qualitative Disclosures About Market Risk</u>**

As of June 30, 2025, there have been no material changes in our economic exposure to market risk from December 31, 2024, a description of which may be found in our Annual Report on Form 10-K for the year ended December 31, 2024, Item 7A, "Quantitative and Qualitative Disclosures about Market Risk," filed with the SEC. See Item 1A, "Risk Factors" included in the Annual Report on Form 10-K for the year ended December 31, 2024, for a discussion of how difficult conditions in the financial markets and the economy generally may materially adversely affect our business and results of our operations.

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**<u>Item 4. Controls and Procedures</u>** 

In order to provide reasonable assurance that the information we must disclose in our filings with the SEC is recorded, processed, summarized and reported on a timely basis, the Company's management, including our Chief Executive Officer and Chief Financial Officer, has reviewed and evaluated the effectiveness of our disclosure controls and procedures, as defined in Securities Exchange Act of 1934, as amended ("Exchange Act") Rule 15d-15(e), as of June 30, 2025. Based on such evaluation, the Chief Executive Officer and Chief Financial Officer have concluded that, as of June 30, 2025 our disclosure controls and procedures were effective.

*Changes in Internal Control over Financial Reporting*

There were no changes in our internal control over financial reporting during the quarter ended June 30, 2025 which have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

*Inherent Limitations on Effectiveness of Controls*

Our management, including our principal executive officer and principal financial officer, does not expect that our disclosure controls and procedures or our internal control over financial reporting will prevent or detect all errors and all fraud. A control system, no matter how well conceived and operated, can provide only reasonable, not absolute, assurance that the objectives of the control system are met. Because of the inherent limitations in all control systems, no evaluation of controls can provide absolute assurance that all control issues and instances of fraud, if any, within the Company have been detected.

**PART II—OTHER INFORMATION**

**<u>Item 1. Legal Proceedings</u>**

See Note 9 to the Unaudited Interim Financial Statements under "Litigation and Regulatory Matters" for a description of certain pending litigation and regulatory matters affecting us, and certain risks to our business presented by such matters, which is incorporated herein by reference.

**<u>Item 1A. Risk Factors</u>**

You should carefully consider the risks described under "Risk Factors" in the Company's Annual Report on Form 10-K for the year ended December 31, 2024. These risks could materially affect our business, results of operations or financial condition, or cause our actual results to differ materially from those expected or those expressed in any forward-looking statements made by, or on behalf of, the Company. These risks are not exclusive, and additional risks to which we are subject include, but are not limited to, the factors mentioned under "Forward-Looking Statements" and the risks of our businesses described elsewhere in this Quarterly Report on Form 10-Q.

------

[**Table of Contents**](#i21731b18eb5542d2b57e39e6ba9ccb3d_7)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

**<u>Item 6. Exhibits</u>**

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| |
|:---|
| **EXHIBIT INDEX** |
| [31.1 Section 302 Certification of the Chief Executive Officer](a2q25exhibit311.htm) |
| [31.2 Section 302 Certification of the Chief Financial Officer](a2q25exhibit312.htm) |
| [32.1 Section 906 Certification of the Chief Executive Officer](a2q25exhibit321.htm) |
| [32.2 Section 906 Certification of the Chief Financial Officer](a2q25exhibit322.htm) |
| 101.INS - XBRL Instance Document - the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document. |
| 101.SCH - XBRL Taxonomy Extension Schema Document. |
| 101.CAL - XBRL Taxonomy Extension Calculation Linkbase Document |
| 101.LAB - XBRL Taxonomy Extension Label Linkbase Document |
| 101.PRE - XBRL Taxonomy Extension Presentation Linkbase Document |
| 101.DEF - XBRL Taxonomy Extension Definition Linkbase Document |
| 104.Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101) |

---

------

[**Table of Contents**](#i21731b18eb5542d2b57e39e6ba9ccb3d_7)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

**SIGNATURES**

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

---

| | |
|:---|:---|
| FORTITUDE LIFE INSURANCE & ANNUITY COMPANY | FORTITUDE LIFE INSURANCE & ANNUITY COMPANY |
| By: | &nbsp;&nbsp;&nbsp;/s/ Greta Hager |
| Name | Greta Hager |
|  | Executive Vice President and Chief Financial Officer |
|  | (Authorized Signatory and Principal Financial Officer) |

---

Date: August 7, 2025

## Exhibit 31.1

**Exhibit 31.1**

**CERTIFICATION OF THE CHIEF EXECUTIVE OFFICER**

I, Alon Neches, certify that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.I have reviewed this Quarterly Report on Form 10-Q of Fortitude Life Insurance & Annuity Company;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a.Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b.Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c.Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;d.Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.The registrant's other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a.All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b.Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

Dated: August 7, 2025

---

| |
|:---|
| /s/ Alon Neches |
| Alon Neches |
| President and Chief Executive Officer |

---

## Exhibit 31.2

**Exhibit 31.2**

**CERTIFICATION OF THE CHIEF FINANCIAL OFFICER**

I, Greta Hager, certify that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.I have reviewed this Quarterly Report on Form 10-Q of Fortitude Life Insurance & Annuity Company;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a.Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b.Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c.Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;d.Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.The registrant's other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a.All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b.Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

Dated: August 7, 2025

---

| |
|:---|
| /s/ Greta Hager |
| Greta Hager |
| Executive Vice President and Chief Financial Officer |

---

## Exhibit 32.1

**Exhibit 32.1**

**CERTIFICATION OF THE CHIEF EXECUTIVE OFFICER**

Pursuant to 18 U.S.C. Section 1350, I, Alon Neches, President and Chief Executive Officer of Fortitude Life Insurance & Annuity Company (the "Company"), hereby certify that the Company's Quarterly Report on Form 10-Q for the period ended June 30, 2025 (the "Report") fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934 and that the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

Dated: August 7, 2025

---

| |
|:---|
| /s/ Alon Neches |
| Alon Neches |
| President and Chief Executive Officer |

---

The foregoing certification is being furnished solely pursuant to 18 U.S.C. Section 1350 and is not being filed as part of the Report or as a separate disclosure document.

## Exhibit 32.2

**Exhibit 32.2**

**CERTIFICATION OF THE CHIEF FINANCIAL OFFICER**

Pursuant to 18 U.S.C. Section 1350, I, Greta Hager, Executive Vice President and Chief Financial Officer of Fortitude Life Insurance & Annuity Company (the "Company"), hereby certify that the Company's Quarterly Report on Form 10-Q for the period ended June 30, 2025 (the "Report") fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934 and that the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

Dated: August 7, 2025

---

| |
|:---|
| /s/ Greta Hager |
| Greta Hager |
| Executive Vice President and Chief Financial Officer |

---

The foregoing certification is being furnished solely pursuant to 18 U.S.C. Section 1350 and is not being filed as part of the Report or as a separate disclosure document.

<br>