Introduction This management’s discussion and analysis (“MD&A”) covers the financial position as of December 31, 2025 and 2024 and the results of operations for the years ended December 31, 2025, 2024 and 2023. Unless the context requires otherwise, when used in this MD&A, the terms “we”, “us”, “our”, or the “Company” mean Brookfield Wealth Solutions Ltd., together with all of its subsidiaries and the term “Brookfield” means Brookfield Corporation, its subsidiaries and controlled companies, including, unless the context otherwise requires, Brookfield Asset Management Ltd. (“BAM”) and any investment fund sponsored, managed or controlled by Brookfield Corporation or its subsidiaries, and does not, for greater certainty, include us or Brookfield Oaktree Holdings, LLC and Oaktree Capital Holdings, LLC and their respective subsidiaries. In addition to historical information, this MD&A contains forward-looking statements. Readers are cautioned that these forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially from those reflected in the forward-looking statements. See “Forward-Looking Statements” within this Form 20-F. The information in this MD&A should be read in conjunction with the consolidated financial statements prepared in conformity with accounting principles generally accepted in the United States of America (“GAAP”) as of December 31, 2025 and 2024 and for the years ended December 31, 2025, 2024 and 2023. Overview of Our Business Our company is an exempted company limited by shares incorporated under the laws of Bermuda on December 10, 2020. The Company holds a direct 100% ownership interest in BWS Holdings Ltd. (“BWS Holdings”), which holds the Company’s interest in its operating subsidiaries, which are: American National Group Inc. (“ANGI”), Clearbrook Group Holdings Inc. (“Clearbrook”, renamed from Argo Group International Holdings, Inc. in January 2026), Blumont Annuity Company (“BAC Canada”), Blumont Annuity Company UK Ltd (“BAC UK”), North End Re Ltd. (“NER Ltd.”) and North End Re (Cayman) SPC (“NER SPC”). In May 2024, American Equity Investment Life Holding Company (“AEL”) became a wholly-owned subsidiary of BWS Holdings. Following the acquisition of AEL, American National Group, LLC (“American National”) completed a downstream merger with AEL. Subsequently, AEL changed its name to American National Group Inc. Following this merger, American National and AEL generally maintain independent insurance operations while sharing certain corporate and management activities. As such, we continue to make references, where applicable, to the operating results of American National and AEL separately in this MD&A. For further details of the Company’s acquisition of AEL and post-merger reorganization, see Note 16, “Acquisitions” in the notes to the consolidated financial statements. Our company is focused on securing the financial futures of individuals and institutions through a range of retirement services, wealth protection products and tailored capital solutions. Our business is presently conducted through our subsidiaries under four reporting segments, which are Annuities, Property and Casualty (“P&C”), Life Insurance and Corporate and Other. The principal operating entities of the Company generally maintain their own independent management and infrastructure. Refer to the “Lines of Business” section within this MD&A for further details on our operating segments’ businesses. Key Financial Data The following table presents key financial data of the Company: AS OF AND FOR THE YEARS ENDED DEC. 31 US$ MILLIONS 2025 2024 2023 Total assets $ 157,181 $ 139,953 $ 61,643 Net income 863 1,247 797 Adjusted Equity(1) 16,837 11,760 8,671 Distributable Operating Earnings(1) 1,699 1,374 745 __________________________ (1)Adjusted Equity and Distributable Operating Earnings are Non-GAAP measures. See “Reconciliation of Non-GAAP Measures”. Page 73 Table of Contents Operating Results and Financial Review CONSOLIDATED RESULTS OF OPERATIONS The following table summarizes the financial results of our business for the years ended December 31, 2025, 2024 and 2023: FOR THE YEARS ENDED DEC. 31 US$ MILLIONS 2025 2024 2023 Net premiums $ 4,487 $ 8,267 $ 4,137 Other policy revenue 790 781 413 Net investment income 5,819 4,264 1,809 Investment related gains 485 369 425 Net investment results from reinsurance funds withheld 54 422 128 Total revenues 11,635 14,103 6,912 Policyholder benefits and claims incurred (4,489) (8,162) (3,939) Interest sensitive contract benefits (2,072) (1,874) (687) Amortization of deferred policy acquisition costs, deferred sales inducements and value of business acquired (1,418) (1,237) (632) Change in fair value of insurance-related derivatives and embedded derivatives (219) 234 41 Change in fair value of market risk benefits (725) (107) 166 Other reinsurance expenses (5) (26) (21) Operating expenses (1,361) (1,356) (777) Interest expense (379) (362) (249) Total benefits and expenses (10,668) (12,890) (6,098) Net income before income taxes 967 1,213 814 Income tax recovery (expense) (104) 34 (17) Net income 863 1,247 797 Less: non-controlling interests (97) (33) (1) Net income attributable to shareholders $ 766 $ 1,214 $ 796 2025 vs. 2024 For the year ended December 31, 2025, we reported net income of $863 million, compared to net income of $1.2 billion in the prior year. The decrease of $384 million is primarily driven by unfavorable fair value movements in our fixed index annuity reserves due to movements in interest rates and equity market performance used in the valuation of these liabilities, partially offset by increased net investment income. The prior year included $314 million of a non-recurring deferred income tax recovery in relation to the corporate income tax regime in Bermuda. Net premiums and other policy revenue were $5.3 billion for the year ended December 31, 2025, compared to $9.0 billion in the prior year. The decrease of $3.8 billion is primarily driven by fewer jumbo deals written in our PRT business as compared to the prior year, coupled with the phased withdrawal from non-core businesses in our P&C segment. Premiums received from retail annuities and funding agreements are generally recorded as deposits and are not included in net premiums. Refer to “Net Premiums” and “Gross Annuity Sales” sections within this MD&A for further details. Net investment income increased by $1.6 billion for the year ended December 31, 2025, relative to the prior year. Net investment income is comprised of interest and dividends earned on fixed income and equity investments, as well as other miscellaneous income from equity accounted investments primarily consisting of real estate partnerships and investment funds. The increase from the prior year was driven by the growth in our investment portfolio due to a full year contribution from AEL, coupled with the continued rotation into higher yielding investment strategies. Investment related gains and losses increased by $116 million for the year ended December 31, 2025, relative to the prior year. The increase is primarily due to realized losses on available-for-sale fixed maturity securities recognized in the prior year. Net investment results from reinsurance funds withheld decreased by $368 million for the year ended December 31, 2025, compared to the prior year. The decrease is primarily driven by reduced investment income recognized through reinsurance funds withheld following the deemed settlement of a previously held reinsurance agreement with AEL post our acquisition (See Note 16, “Acquisitions” in the notes to the consolidated financial statements). Interest sensitive contract benefits represent interest and equity index credited to policyholders’ account balances (“PAB”) from our investment contracts with customers, as well as amortization of deferred revenue. For the year ended December 31, 2025, the amount increased by $198 million relative to the prior year primarily due to the full year impact from AEL’s PAB liabilities. Page 74 Table of Contents Amortization of deferred policy acquisition costs (“DAC”), deferred sales inducements (“DSI”) and value of business acquired (“VOBA”) were $1.4 billion for the year ended December 31, 2025, compared to $1.2 billion in the prior year. The increase of $181 million was driven by the growth in DAC and DSI from new sales in the year, and a full year of amortization of VOBA on previously acquired businesses. Change in fair value of insurance-related derivatives and embedded derivatives represents the fair value change of call options used to fund the equity-indexed annuity and universal life contracts as well as the fair value change of embedded derivatives of these contracts. Fair value changes are impacted by the expected and actual performance of the indices the call options relate to as well as interest rates used to estimate our embedded derivatives. The decrease of $453 million is attributable to the change in interest rates and equity market performance used in the valuation of these liabilities. Change in fair value of market risk benefits represents the mark-to-market movements of our liability based on the protection to the policyholder from capital market risks. The loss of $725 million for the year ended December 31, 2025 is primarily due to the assumption of AEL’s market risk benefit liabilities coupled with movements in interest rates and equity markets used in the valuation of these liabilities. Other reinsurance expenses decreased by $21 million. The decrease is due to reduced expenses from our reinsurance assumed businesses as a result of the deemed settlement of a previously held reinsurance agreement between NER SPC and AEL in the second quarter of 2024. Operating expenses increased by $5 million for the year ended December 31, 2025, compared to the prior year. The increase was primarily driven by additional costs incurred to support the continued growth of our business. Interest expense increased by $17 million for the year ended December 31, 2025, compared to the prior year. The increase is primarily driven by additional borrowings through our warehouse facilities to support investment purchases. Distributable operating earnings (“DOE”) increased by $325 million to $1.7 billion for the year ended December 31, 2025. Please refer to the “Segment Review” section within this MD&A for additional details. 2024 vs. 2023 For the year ended December 31, 2024, we reported net income of $1.2 billion compared to a net income of $797 million in the prior year. The increase of $450 million is primarily driven by the contributions of AEL and Clearbrook during the year, growth in our existing businesses and continued redeployment of capital into higher yielding investment strategies. Our net income for the year ended December 31, 2024 included a non-recurring deferred income tax recovery in relation to the corporate income tax regime in Bermuda. Net premiums and other policy revenue were $9.0 billion for the year ended December 31, 2024, compared to $4.6 billion in the prior year. The increase of $4.5 billion is primarily attributable to the contributions from AEL and Clearbrook and growth in our PRT business. Net investment income increased by $2.5 billion for the year ended December 31, 2024, relative to the prior year. The increase in 2024 was driven by the growth in our investment portfolio due to the contribution from AEL and Clearbrook and continued rotation into higher yielding investment strategies. Investment related gains and losses decreased by $56 million for the year ended December 31, 2024, relative to the prior year. The decrease is primarily driven by realized losses on investments transferred as a reinsurance agreement executed in the third quarter of 2024 partially offset by appreciation in our equity securities portfolio. Please refer to Note 12, “Reinsurance” in the notes to the consolidated financial statements for additional information on the reinsurance agreement. Net investment results from reinsurance funds withheld increased by $294 million for the year ended December 31, 2024 compared to the prior year. The increase is primarily driven by mark-to-market gains on embedded derivatives arising from our modified coinsurance reinsurance treaties, offset by reduced investment income from NER SPC, following the deemed settlement of a previously held reinsurance agreement with AEL post our acquisition (See Note 16, “Acquisitions” in the notes to the consolidated financial statements). For the year ended December 31, 2024, interest sensitive contract benefits increased by $1.2 billion primarily driven by the assumption of AEL’s PAB liabilities. Amortization of DAC, DSI and VOBA were $1.2 billion for the year ended December 31, 2024, compared to $632 million in the prior year. The increase of $605 million was primarily driven by the amortization of VOBA arising from the acquisition of AEL and Clearbrook. Change in fair value of insurance-related derivatives and embedded derivatives increased by $193 million for the year ended December 31, 2024 and is attributable to changes in interest rates and equity market performance used in the valuation of these liabilities. We recognized a loss of $107 million in the change in fair value of market risk benefits for the year ended December 31, 2024. The loss is primarily driven by the assumption of AEL’s market risk benefit liabilities. Page 75 Table of Contents Other reinsurance expenses increased by $5 million for the year ended December 31, 2024. The increase is driven by increased ceded reinsurance exposures following the acquisition of AEL, partially offset by the reduced expenses from our reinsurance assumed businesses as a result of the deemed settlement of a previously held reinsurance agreement between NER SPC and AEL. Operating expenses were $1.4 billion for the year ended December 31, 2024, compared to $777 million in the prior year period. The increase of $579 million was primarily driven by the contribution of expenses from AEL and Clearbrook, as well as additional costs incurred to support the continued growth of our business. Interest expense increased by $113 million for the year ended December 31, 2024, compared to the prior year. The increase was primarily driven by debt assumed and raised through our acquisition of AEL. DOE increased by $629 million to $1.4 billion for the year ended December 31, 2024. Please refer to the “Segment Review” section within this MD&A for additional details. CONSOLIDATED FINANCIAL POSITION The following table summarizes the financial position as of December 31, 2025 and 2024: AS OF DEC. 31 US$ MILLIONS 2025 2024 Assets Investments $ 110,044 $ 92,966 Cash and cash equivalents 13,014 12,243 Accrued investment income 892 860 Deferred policy acquisition costs, deferred sales inducements and value of business acquired 11,683 10,696 Reinsurance funds withheld 1,435 1,517 Premiums due and other receivables 620 647 Ceded unearned premiums 352 520 Deferred tax asset 687 760 Reinsurance recoverables and deposit assets 12,151 13,195 Property and equipment 290 272 Intangible assets 1,625 1,690 Goodwill 783 783 Other assets 2,783 2,461 Separate account assets 822 1,343 Total assets 157,181 139,953 Liabilities Future policy benefits 16,249 14,088 Policyholders’ account balances 92,992 83,079 Policy and contract claims 7,277 7,659 Deposit liabilities 1,419 1,502 Market risk benefits 4,536 3,655 Unearned premium reserve 1,272 1,843 Due to related parties 819 684 Other policyholder funds 360 347 Notes payable 205 189 Corporate borrowings 628 17 Non-recourse borrowings 4,857 4,334 Funds withheld for reinsurance liabilities 3,157 3,392 Other liabilities 4,671 4,745 Separate account liabilities 822 1,343 Total liabilities 139,264 126,877 Equity Class A exchangeable, Class B and Class C 13,645 9,968 Retained earnings 2,820 2,054 Accumulated other comprehensive income 1,121 204 Non-controlling interests 331 850 Total equity 17,917 13,076 Total liabilities and equity $ 157,181 $ 139,953 Comparison as of December 31, 2025 and 2024 Total assets increased by $17.2 billion during the year to $157.2 billion, primarily driven by net annuity inflows, investment purchases and favorable unrealized fair value movements on our equity securities portfolio. Page 76 Table of Contents Cash and cash equivalents increased by $771 million from December 31, 2024 to December 31, 2025, primarily driven by annuity sales during the year not yet deployed into our investment strategies. We continue to maintain a strong liquidity position across our segments. For further information, refer to “Liquidity and Capital Resources” section, including “Cash Flows Review” section, within this MD&A. Total investments increased by $17.1 billion from December 31, 2024 to December 31, 2025, primarily driven by the continued deployment of annuity sales into investment strategies, investment purchases and favorable unrealized fair value movements on our equity securities portfolio. The decrease in reinsurance funds withheld of $82 million from December 31, 2024 to December 31, 2025 was primarily driven by changes in the value of their embedded derivative arising from the changes in interest rates used in its valuation. DAC are capitalized costs directly related to writing new policyholder contracts including commissions. DSI consist of premium and interest bonuses credited to PAB. The VOBA intangible asset arose from our business combinations. The increase from December 31, 2024 to December 31, 2025 was driven by new business written during the year. Ceded unearned premiums represent a portion of unearned premiums ceded to reinsurers. The decrease of $168 million from December 31, 2024 to December 31, 2025 is primarily driven by the recognition of earned premiums subject to reinsurance. Reinsurance recoverables and deposit assets are estimated amounts due to the Company from reinsurers or cedants, related to paid and unpaid ceded benefits, claims and expenses and are presented net of reserves for collectability. The decrease of $1.0 billion from December 31, 2024 to December 31, 2025 is driven by a reduction in associated insurance liabilities. Other assets were $2.8 billion as of December 31, 2025, increasing by $322 million from December 31, 2024. The balance includes current tax assets, market risk benefit asset, prepaid pension assets, as well as other miscellaneous receivables. The increase is primarily driven by an increase in market risk benefit asset due to movements in interest rates and equity markets used in its valuation. Intangible assets decreased by $65 million from December 31, 2024 to December 31, 2025, principally due to the amortization of intangible assets during the year. Goodwill consists of $662 million arising from the acquisition of AEL in May 2024 as well as $121 million arising from the acquisition of American National in May 2022. Separate account assets and liabilities both decreased by $521 million from December 31, 2024 to December 31, 2025, principally due to transfers made to the general account. Future policy benefits and PAB increased by $12.1 billion from December 31, 2024 to December 31, 2025, primarily driven by annuity sales coupled with fair value movements on our embedded derivatives during the year. Policy and contract claims decreased by $382 million from December 31, 2024 to December 31, 2025, driven by favorable loss experience in our P&C segment during the year. Corporate and non-recourse borrowings increased by $1.1 billion from December 31, 2024 to December 31, 2025, primarily driven by additional secured borrowings through our warehouse facilities to support investment purchases. Total equity increased by $4.8 billion from December 31, 2024 to December 31, 2025. The increase was primarily driven by the issuance of incremental Class C shares, coupled with comprehensive income of $1.8 billion recognized during the year. Page 77 Table of Contents SEGMENT REVIEW The Company’s reporting segments are Annuities, P&C, Life Insurance and Corporate and Other. We measure operating performance primarily using DOE which measures our ability to acquire net insurance assets at a positive margin, and invest these assets at a return that is greater than the cost of policyholder liabilities. The following table presents DOE of each of our reporting segments for the years ended December 31, 2025, 2024 and 2023: FOR THE YEARS ENDED DEC. 31 US$ MILLIONS 2025 2024 2023 Annuities $ 1,663 $ 1,220 $ 595 P&C 399 263 84 Life Insurance 153 194 198 Corporate and Other (516) (303) (132) DOE $ 1,699 $ 1,374 $ 745 2025 vs 2024 Annuities – DOE within our annuities business represents contributions from both our retail and institutional platforms. DOE increased by $443 million for the year ended December 31, 2025 compared to the prior year. The increase was primarily attributable to an increased asset base and deployment into higher yielding investment strategies. P&C – DOE increased by $136 million for the year ended December 31, 2025 compared to the prior year. The increase was primarily driven by improvements in our loss experience arising from underwriting actions implemented over the past twelve months. Life Insurance – DOE decreased by $41 million for the year ended December 31, 2025 compared to the prior year. The decrease was primarily driven by lower retained business as a result of a reinsurance agreement executed in the third quarter of 2024. Corporate and Other – DOE decreased by $213 million for the year ended December 31, 2025 compared to the prior year. The decrease was primarily driven by increased tax expenses associated with higher DOE generated during the year and increased operating expenses, partially offset by higher investment income from our deployment into higher yielding investment strategies. 2024 vs. 2023 Annuities – DOE increased by $625 million for the year ended December 31, 2024 compared to 2023. The increase was primarily attributable to earnings contributed from AEL as well as increased investment income from our continued deployment into higher yielding investment strategies. P&C – DOE increased by $179 million for the year ended December 31, 2024 compared to 2023. The increase was primarily driven by full year earnings contributed from Clearbrook coupled with improvements in our loss experience arising from underwriting actions implemented throughout 2024. Life Insurance – DOE decreased by $4 million for the year ended December 31, 2024 compared to 2023. The favorable impact of improved investment income from our continued deployment into higher yielding investment strategies was offset by the aforementioned reinsurance agreement executed in the third quarter of 2024. Corporate and Other – DOE decreased by $171 million for the year ended December 31, 2024 compared to 2023. The decrease was primarily driven by increased interest expenses due to debt assumed and raised through our acquisition of AEL, coupled with increased operating and other expenses incurred to support the continued growth of our business. Lines of Business Through our operating subsidiaries, our company offers a range of retirement services, wealth protection products and tailored capital solutions focused on securing the financial futures of individuals and institutions. Annuities Fixed Index Annuities – Fixed index annuities allow policyholders to earn index credits based on the performance of a particular index without the risk of loss of their account value. Certain products offer a premium bonus in which the initial annuity deposit on these policies is increased at issuance by a specified premium bonus rate. Generally, the surrender charge and bonus vesting provisions of our policies are structured such that we have comparable protection from early termination between bonus and non-bonus products. The annuity contract value is equal to the sum of premiums paid, premium bonuses and interest credited (“index credits” for funds allocated to an index based strategy), which is based upon an overall limit (or “cap”) or a percentage (the “participation rate”) of the appreciation (based in certain situations on monthly averages or monthly point-to-point calculations) in a recognized index or benchmark. Caps and participation rates limit the amount of interest the policyholder may earn in any one contract year and may be adjusted by us annually subject to stated minimums. Page 78 Table of Contents Fixed Rate Annuities – Fixed rate deferred annuities include annual, multi-year rate guaranteed products (“MYGAs”) and single premium deferred annuities (“SPDAs”). Our annual reset fixed rate annuities have an annual interest rate (the “crediting rate”) that is guaranteed for the first policy year. After the first policy year, we have the discretionary ability to change the crediting rate once annually to any rate at or above a guaranteed minimum rate. Our MYGAs and SPDAs are similar to our annual reset products except that the initial crediting rate on MYGAs is guaranteed for a stated period of time before it may be changed at our discretion while the initial crediting rate on SPDAs is guaranteed for either three or five years. Pension Risk Transfer – Pension Risk Transfer is the transfer by a corporate sponsor of the risks, or some of the risks, associated with the sponsorship and administration of a pension plan, in particular, investment risk and longevity risk. Longevity risk represents the risk of an increase in life expectancy of plan beneficiaries. These risks can be transferred either to an insurer like us through a group annuity transaction commonly referred to as PRT, or to an individual through a lump-sum settlement payment. PRT using insurance typically involves a single premium group annuity contract that is issued to a pension plan by an insurer, permitting the corporate pension plan sponsor to discharge certain pension plan liabilities from its balance sheet. Funding Agreements – Funding agreements include those issued to special-purpose unaffiliated trusts in connection with our funding agreement-backed notes (“FABN”) program and those directly issued to our institutional counterparties. Our FABN program allows its special-purpose unaffiliated trust to offer its senior secured medium-term notes. The net proceeds of the issuance of notes are used by the trust to purchase one or more funding agreements from certain of our insurance subsidiaries with matching interest and maturity payment terms. Single Premium Immediate Annuities – A single premium immediate annuity is purchased with one premium payment, providing periodic (usually monthly or annual) payments to the annuitant for a specified period, such as for the remainder of the annuitant’s life. Return of the original deposit may or may not be guaranteed, depending on the terms of the annuity contract. Variable Annuities – With a variable annuity, the policyholder bears the investment risk because the value of the policyholder’s account balance varies with the investment experience of the separate account investment options selected by the policyholder. Our variable annuity products have no guaranteed minimum withdrawal benefits. This product accounts for less than 1% of our annuities business. Property and Casualty Property – Property lines offer policies protecting various personal and commercial properties from man-made and natural disasters, including property insurance for homeowners and renters. Casualty – Casualty lines include a broad range of primary and excess casualty products, such as specialty casualty, construction defect, general liability, commercial multi-peril, workers compensation, product liability, environmental liability and auto liability. Casualty lines are generally considered long-tailed as it takes a relatively long period of time to finalize and resolve all claims from a given accident year. Some products have long claims reporting lags and/or longer time lags for payment of claims. Specialty – Specialty lines include niche insurance coverages such as garage and inland marine and offer insurance programs and fronting solutions. Specialty lines are considered generally short-tailed as claims are typically known relatively quickly, although it may take a longer period of time to finalize and resolve all claims from a given year. Run-off and Other – Run-off and Other lines primarily consist of discontinued lines previously underwritten by our insurance subsidiaries including professional liability and surety coverages. Life Insurance Whole Life – Whole life products provide a guaranteed benefit upon the death of the insured in return for the periodic payment of a fixed premium over a predetermined period. Premium payments may be required for the entire life of the contract, to a specified age or a fixed number of years, and may be level or change in accordance with a predetermined schedule. Whole life insurance includes some policies that provide a participation feature in the form of dividends. Policyholders may receive dividends in cash or apply them to increase death benefits or cash values available upon surrender, or reduce the premiums required to maintain the contract in-force. Universal Life – Universal life insurance products provide coverage through a contract that gives the policyholder flexibility in premium payments and coverage amounts. Universal life products may allow the policyholder, within certain limits, to increase or decrease the amount of death benefit coverage over the term of the contract and to adjust the frequency and amount of premium payments. Universal life products are interest rate sensitive, and we determine the interest crediting rates during the contract period, subject to policy specific minimums. An equity-indexed universal life product is credited with interest using a return that is based, in part, on changes in an index, such as the Standard & Poor’s 500 Index (“S&P 500”), subject to a specified minimum. Variable Universal Life – Variable universal life products provide insurance coverage on a similar basis as universal life, except that the policyholder bears the investment risk because the value of the policyholder’s account balance varies with the investment experience of the securities selected by the policyholder held in the separate account. Page 79 Table of Contents Corporate and Other Our Corporate and Other segment performs various corporate and other activities that support our core insurance operations. Such activities include our investment warehousing activities where we temporarily warehouse investments that will ultimately be transferred into our insurance investment portfolios in the near term. We generate investment income from warehoused investments and incur interest expenses on revolving credit facilities utilized to fund these investments. Also included in our Corporate and Other segment activities are certain hedging activities, certain charges and activities that are not attributable to our insurance operating segments and interest expense related to the Company’s corporate and non-recourse borrowings. Net Premiums The breakdown of premiums by product, net of ceded premiums, is as follows: FOR THE YEARS ENDED DEC. 31 US$ MILLIONS 2025 2024 2023 Annuities Retail(1): Fixed Index $ — $ 5 $ — Fixed Rate 2 4 2 Variable — — — Total Retail Annuities 2 9 2 Institutional: Pension Risk Transfer(2) 1,712 4,804 1,467 Funding Agreements(1) — — — Total Institutional Annuities 1,712 4,804 1,467 Total Annuities 1,714 4,813 1,469 Whole Life and Others 377 511 520 Property and Casualty Property(3) 435 358 361 Casualty(3) 1,662 2,041 1,698 Specialty 228 258 33 Run-off and Other 71 286 56 Total Property and Casualty 2,396 2,943 2,148 Total Net Premiums $ 4,487 $ 8,267 $ 4,137 __________________________ (1)Premiums received from retail annuities and funding agreements are generally recorded as deposits and are not included in net premiums. (2)Premiums differ from gross annuity sales in PRT, since premiums are recognized as revenue when due while they are included in sales upon deal close, which is confirmed by the counterparty. (3)Certain products have been reclassified to conform to Clearbrook’s lines of business. 2025 vs. 2024 For the year ended December 31, 2025, we reported total net premiums of $4.5 billion, compared to $8.3 billion in the prior year. The decrease of $3.8 billion is primarily driven by fewer jumbo deals written in our PRT business as compared to the prior year, coupled with the phased withdrawal from non-core businesses in our P&C segment and reinsurance agreements executed in our Life Insurance segment. 2024 vs. 2023 For the year ended December 31, 2024, we reported total net premiums of $8.3 billion, compared to $4.1 billion in 2023. The increase of $4.1 billion is primarily due to the growth in our Annuities and P&C segments. Net premiums for our Annuities segment increased by $3.3 billion as we continue to scale our PRT business. Our P&C segment increased by $795 million due to full year contributions from Clearbrook. Page 80 Table of Contents Gross Annuity Sales Gross annuity sales are comprised of all products’ deposits, which generally are not included in revenues on the statement of operations. Gross annuity sales include directly written business, flow reinsurance assumed as well as premiums and deposits generated from assumed block reinsurance transactions. The breakdown of gross annuity sales follows: FOR THE YEARS ENDED DEC. 31, 2025 US$ MILLIONS 2025 2024 2023 Retail: Fixed Index $ 9,032 $ 5,522 $ 2,206 Fixed Rate 6,236 5,132 3,938 Variable 393 372 63 Total Retail Annuities 15,661 11,026 6,207 Institutional: Pension Risk Transfer(1) 1,879 4,814 1,469 Funding Agreements 2,289 — — Total Institutional Annuities 4,168 4,814 1,469 Total Gross Annuity Sales $ 19,829 $ 15,840 $ 7,676 __________________________ (1)Gross annuity sales differ from premiums in PRT, since premiums are recognized as revenue when due while they are included in sales upon deal close, which is confirmed by the counterparty. 2025 and 2024 For the year ended December 31, 2025, we reported total gross annuity sales of $19.8 billion, compared to $15.8 billion in the prior year. The increase of $4.0 billion is primarily driven by increased sales activity in our fixed index retail products, coupled with the commencement of our funding agreement programs in 2025. 2024 and 2023 For the year ended December 31, 2024, we reported total gross annuity sales of $15.8 billion, compared to $7.7 billion in 2023. The increase of $8.2 billion is primarily due to the contributions from AEL, coupled with the growth in our PRT business. Income Taxes We recorded an effective tax rate of 10.8% on net income before income taxes in 2025, compared to an effective tax rate of (2.8)% in 2024 and 2.2% in 2023. The effective tax rate may vary from period to period based on the relative mix of earnings across the jurisdictions in which we operate and the applicable statutory tax rates in those jurisdictions. During the current year, applicable statutory tax rates by jurisdiction were 15.0% for Bermuda, 21.0% for the U.S., 25.0% for the U.K. and 26.5% for Canada. See Note 22, “Income Taxes” in the notes to the consolidated financial statements for additional information. Page 81 Table of Contents Liquidity and Capital Resources CAPITAL RESOURCES We strive to maintain sufficient financial liquidity at all times so that we are able to participate in attractive opportunities as they arise, better withstand sudden adverse changes in economic circumstances within our operating subsidiaries and maintain payments to policyholders, as well as maintain distributions to our shareholders. Our principal sources of liquidity are cash flows from our operations, access to the Company’s third-party credit facilities, and our credit facility and equity commitment with Brookfield. We proactively manage our liquidity position to meet liquidity needs and continue to develop relationships with lenders who provide borrowing capacity at competitive rates, while looking to minimize adverse impacts on investment returns. We look to structure the ownership of our assets to enhance our ability to monetize them to provide additional liquidity, if needed. Our corporate liquidity for the periods noted below consisted of the following: AS OF DEC. 31 US$ MILLIONS 2025 2024 Cash and cash equivalents $ 120 $ 311 Liquid financial assets — 116 Undrawn credit facilities 1,136 1,608 Total Corporate Liquidity(1) $ 1,256 $ 2,035 __________________________ (1)Total Corporate Liquidity is a Non-GAAP measure. See “Performance Measures used by Management”. As of the date of this MD&A, our liquidity is sufficient to meet our present requirements for the foreseeable future. In June 2021, Brookfield provided to the Company an equity commitment in the amount of $2.0 billion to fund future growth, which the Company may draw on from time to time. The equity commitment may be called by the Company in exchange for the issuance of Class C shares or redeemable junior preferred shares. As of December 31, 2025, there was $2.0 billion of undrawn equity commitment available. In addition, in connection with the Company’s spin-off from Brookfield on June 28, 2021, we entered into a credit agreement with Brookfield as the lender, providing a revolving $400 million credit facility. We also have $1.3 billion of revolving bilateral credit facilities with external banks. We use the liquidity provided by our credit facilities for working capital purposes, and we may use the proceeds from the capital commitment to fund growth capital investments and acquisitions. The determination of which of these sources of funding the Company will access in any particular situation is a matter of optimizing needs and opportunities at that time. As of December 31, 2025, there was $628 million drawn on the external bilateral facilities and no amount drawn on the Brookfield facility. Today, we have significant liquidity within our insurance portfolios, giving us flexibility to secure attractive investment opportunities. In addition to a portfolio of highly liquid financial assets, our operating companies have additional access to liquidity from sources such as the Federal Home Loan Bank (“FHLB”) programs. As of December 31, 2025, the Company had no drawings and a total of $1.5 billion undrawn commitment available related to these programs. Liquidity within our operating subsidiaries may be restricted from time to time due to regulatory constraints. As of December 31, 2025, the Company’s total liquidity was $62.6 billion, which included $120 million of unrestricted cash and cash equivalents held by non-regulated corporate entities. AS OF DEC. 31 US$ MILLIONS 2025 2024 Cash and cash equivalents $ 13,014 $ 12,243 Liquid financial assets 48,425 39,195 Undrawn credit facilities 1,136 1,608 Total Liquidity(1) $ 62,575 $ 53,046 __________________________ (1)Total Liquidity is a Non-GAAP measure. See “Performance Measures used by Management”. As of December 31, 2025 and 2024, 91% and 87% of the Company’s Total Liquidity was held by our U.S. insurance subsidiaries, respectively. CASH FLOWS REVIEW Comparison of the years ended December 31, 2025, 2024 and 2023 The following table presents a summary of our cash flows and ending cash balances for the years ended December 31, 2025, 2024 and 2023: Page 82 Table of Contents FOR THE YEARS ENDED DEC. 31 US$ MILLIONS 2025 2024 2023 Operating activities $ 2,614 $ 4,569 $ 1,507 Investing activities (9,672) 1,433 (1,809) Financing activities 7,810 1,922 2,465 Cash and cash equivalents: Cash and cash equivalents, beginning of year 12,243 4,308 2,145 Net change during the year 752 7,924 2,163 Foreign exchange on cash balances held in foreign currencies 19 11 — Cash and cash equivalents, end of year $ 13,014 $ 12,243 $ 4,308 Operating Activities 2025 vs. 2024 For the year ended December 31, 2025, we generated $2.6 billion of cash from operating activities compared to $4.6 billion generated during the prior year. The decrease is primarily driven by fewer jumbo deals written in our PRT business as compared to the prior year, partially offset by the full year contribution from AEL’s operating activities. 2024 vs. 2023 For the year ended December 31, 2024, we generated $4.6 billion of cash from operating activities compared to $1.5 billion generated during 2023. The increase is primarily due to higher investment income from the growth in the investment portfolio as well as the contributions from AEL and Clearbrook. Investing Activities 2025 vs. 2024 During the current year, $9.7 billion of cash outflows from investing activities arose as we continue to deploy cash and cash equivalents into investments, coupled with the continued rotation of our investment portfolio into higher yielding investment strategies, compared to net cash inflows of $1.4 billion in the prior year, primarily driven from $10.8 billion of cash acquired as part of our acquisition of AEL. 2024 vs. 2023 During 2024, $1.4 billion of cash inflows from investing activities arose primarily from $10.8 billion of cash acquired as part of our acquisition of AEL, net of cash proceeds paid, partially offset by net deployment into investments during the period, compared to net outflows of $1.8 billion in 2023. Financing Activities 2025 vs. 2024 For the year ended December 31, 2025, we had a net cash inflow of $7.8 billion, which increased from a net cash inflow of $1.9 billion in the prior year. The increase was primarily driven by deposits received on policyholders’ accounts, including sales from our funding agreement programs, coupled with net drawings on our borrowings, partially offset by surrenders and withdrawals on policyholders’ accounts. 2024 vs. 2023 For the year ended December 31, 2024, we had a net cash inflow of $1.9 billion, which decreased from a net cash inflow of $2.5 billion in 2023. The decrease was primarily driven by withdrawals on policyholders’ accounts coupled with net repayments on our borrowings, partially offset by surrenders and withdrawals on policyholders’ accounts. Financial Instruments To the extent that we believe it is economic to do so, our strategy is to hedge a portion of our equity investments and/or cash flows exposed to foreign currencies by the Company. The following key principles form the basis of our foreign currency hedging strategy: •We leverage any natural hedges that may exist within our operations; •We utilize local currency debt financing to the extent possible; and •We may utilize derivative contracts to the extent that natural hedges are insufficient. As of December 31, 2025, our total equity was $17.9 billion. Included in equity was approximately $279 million and $188 million invested in Canadian dollars and British pounds, respectively. As of December 31, 2025, we had a notional $11.2 billion (2024 – $6.7 billion) of foreign exchange forward and cross currency forward contracts in place to hedge against foreign currency risk. For additional information, see Note 9, “Derivative Instruments” in the notes to the consolidated financial statements. Page 83 Table of Contents Future Capital Obligations and Requirements As of December 31, 2025, the Company and its subsidiaries, in aggregate, had total unfunded investment commitments of $12.3 billion (2024 – $10.3 billion). These commitments, when funded, are primarily recognized as mortgage loans, private loans, investment funds, investment real estate and other invested assets. For additional information, see Note 28, “Financial Commitments and Contingencies” in the notes to the consolidated financial statements. The following is the maturity by year on corporate and non-recourse borrowings: Payments due by year AS OF DEC. 31, 2025 US$ MILLIONS Total Unamortized discount and issuance costs Less than 1 year 1 - 2 years 2 - 3 years 3 - 4 years 4 - 5 years More than 5 years Corporate borrowings $ 628 — — — — — 628 — Non-recourse borrowings $ 4,857 (70) 912 600 750 600 — 2,065 Payments due by year AS OF DEC. 31, 2024 US$ MILLIONS Total Unamortized discount and issuance costs Less than 1 year 1 - 2 years 2 - 3 years 3 - 4 years 4 - 5 years More than 5 years Corporate borrowings $ 17 — — — — — 17 — Non-recourse borrowings $ 4,334 (79) 1,005 — 1,800 — 600 1,008 For additional information, see Note 21, “Corporate and Non-Recourse Borrowings” in the notes to the consolidated financial statements. Capital Management Capital management is the ongoing process of determining and maintaining the quantity and quality of capital appropriate to take advantage of the Company’s growth opportunities, to support the risks associated with the business and to optimize shareholder returns while fully complying with regulatory capital requirements. The Company and its subsidiaries take an integrated approach to risk management that involves the Company’s risk appetite and capital requirements. The operating capital levels are determined by each respective operating company’s risk appetite and Own Risk and Solvency Assessment (“ORSA”). Furthermore, additional stress techniques are used to evaluate the Company’s capital adequacy under sustained adverse scenarios. American National, AEL and certain Clearbrook subsidiaries are required to follow Risk Based Capital (“RBC”) requirements based on guidelines of the National Association of Insurance Commissioners (“NAIC”). RBC is a method of measuring the level of capital appropriate for an insurance company to support its overall business operations, in light of its size and risk profile. It provides a means of assessing capital adequacy, where the degree of risk taken by the insurer is the primary determinant. Freestone Re Ltd., Argo Re Ltd. and NER Ltd. are required to maintain minimum statutory capital and surplus equal to the minimum solvency margin and the minimum economic capital and surplus equal to the enhanced capital requirement as determined by the Bermuda Monetary Authority (“BMA”). The Enhanced Capital Requirement (“ECR”) is calculated based on the Bermuda Solvency Capital Requirement model, a risk-based model that takes into account the risk characteristics of different aspects of a company’s business. BAC Canada is subject to the Life Insurance Capital Adequacy Test (“LICAT”) as determined by Office of the Superintendent of Financial Institutions (“OSFI”). The LICAT ratio compares the regulatory capital resources of an insurance company to its Base Solvency Buffer or required capital. The Company has determined that it is in compliance with all capital requirements as of December 31, 2025 and 2024. Page 84 Table of Contents Brookfield Operating Results An investment in the Class A exchangeable shares of the Company is intended to be, as nearly as practicable, functionally and economically, equivalent to an investment in Brookfield. A summary of Brookfield’s operating results for the years ended December 31, 2025, 2024 and 2023 and is provided below: FOR THE YEARS ENDED DEC. 31 US$ MILLIONS, EXCEPT PER SHARE AMOUNTS 2025 2024 2023 Revenues $ 75,100 $ 86,006 $ 95,924 Net income attributable to Brookfield shareholders 1,307 641 1,130 Net income of consolidated business 3,235 1,853 5,105 Net income per share: Basic(1) 0.51 0.21 0.41 Diluted(1) 0.49 0.20 0.41 Distributable earnings before realizations 5,386 4,871 4,223 __________________________ (1)Adjusted to reflect the three-for-two stock split completed on October 9, 2025. For the years ended December 31, 2025, 2024 and 2023, Brookfield’s pro rata share of our DOE represented approximately 31%, 28% and 18% of their total distributable earnings before realizations, respectively. Each exchangeable share has been structured with the intention of providing an economic return equivalent to one Brookfield Class A Share due to each exchangeable share (i) being exchangeable at the option of the holder for one Brookfield Class A Share or its cash equivalent (the form of payment to be determined at the election of Brookfield), subject to certain limitations, and (ii) receiving distributions at the same time and in the same amounts as dividends on the Brookfield Class A Shares. We therefore expect that the market price of the exchangeable shares should be impacted by the market price of Brookfield Class A Shares and the business performance of Brookfield as a whole. In addition to carefully considering the disclosure made in this MD&A, careful consideration should be made to the disclosure made by Brookfield in its continuous disclosure filings. Copies of the Brookfield’s continuous disclosure filings are available electronically on EDGAR on the SEC’s website at www.sec.gov or on SEDAR+ at www.sedarplus.ca. Industry Trends and Factors Affecting Our Performance As a financial services business providing capital based solutions to the insurance industry, we are affected by numerous factors, including global economic and financial market conditions. Price fluctuations within equity, credit, commodity and foreign exchange markets, as well as interest rates, which may be volatile and mixed across geographies, can significantly impact the performance of our business. We also monitor factors such as consumer spending, business investment, the volatility of capital markets, interest rates, unemployment and the risk of inflation or deflation, which affect the business and economic environment and, in turn, impact the demand for the type of financial and insurance products offered by our business. We believe the following current trends present significant opportunities for us to grow our business: •Financial market volatility and dislocations across asset classes favor insurers with diverse investment portfolios and access to alternative credit. Insurers primarily invest in public market fixed income products and are exposed to public market valuations. Insurers with an ability to diversify investment portfolios to include alternative and private credit assets provide more favorable investment performance. •Many insurers are looking for ways to shift toward less asset-intensive insurance products. Given the capital-intensive nature of life and annuity liabilities, many insurance companies with diversified exposure are looking to reduce their exposure to life and annuity products, including through reinsurance, in order to free up capital that they can deploy in support of less asset-intensive products and business lines. •Recent market conditions are exposing under-capitalized companies. Some writers of annuity products are facing higher hedging costs amidst volatile markets, and changes in regulatory standards are increasing the transparency of liability valuations in the current low-rate environment. This has necessitated a need to raise or otherwise free up capital, and the reinsurance market offers writers of annuity products an opportunity to do so. We have access to capital and are able to provide capital support to these companies. •Public market valuations have compressed while capital needs have grown. Insurers are trading at cyclical lows, and given the prevailing market environment, are looking to partner with organizations like ours that can provide solutions to address capital needs. Market Risk Our statements of financial position within our financial statements include substantial amounts of assets and liabilities whose fair values are subject to market risks. Our significant market risks are primarily associated with interest rates, foreign currency exchange rates and credit risk. The fair values of our investment portfolios remain subject to considerable volatility. The following sections address the significant market risks associated with our business activities. Page 85 Table of Contents Foreign Exchange Rate Risk The Company’s obligations under its insurance contracts are predominantly denominated in U.S. dollars, but a portion of the assets supporting these liabilities are denominated in non-U.S. dollars. We manage foreign exchange risk primarily using foreign exchange forwards and cross currency swaps. Our investment policy sets out the foreign currency exposure limits and types of derivatives permitted for hedging purposes. Our net assets are subject to financial statement translation into U.S. dollars. All of our financial statement translation-related impact from changes in foreign currency rates is recorded in other comprehensive income. Gains and losses from foreign currency transactions of the Company’s invested assets are reported in “Investment related gains (losses)” or “Net investment results from reinsurance funds withheld” in the statements of operations. Gains and losses from foreign currency transactions of the Company’s insurance liabilities are reported in “Policyholder benefits and claims incurred” in the statements of operations. The impact on net income resulting from a hypothetical 10% decrease in foreign currencies against the U.S. dollar, net of the impact of foreign exchange hedging strategies, would not be expected to be material. Interest Rate Risk Substantial and sustained increases or decreases in interest rates may cause certain market dislocations that could negatively impact our financial performance. We manage interest rate risk through our asset liability management, which we refer to as ALM, the framework whereby the effective and key rate durations of the investment portfolio are closely matched to those of the insurance liabilities. Within the context of the ALM framework, we use derivatives including interest rate swaps, options and futures to reduce market risk. For the annuities business, where the timing and amount of the benefit payment obligations can be readily determined, the matching of asset and liability cash flows is effectively controlled through this comprehensive duration management process. Our primary interest rate risk exposure is the exposure of our fixed maturity investment portfolio to interest rate risk and the changes in interest rates. In addition, our insurance-related liabilities, net of reinsurance (consisting of Future policy benefits, Policyholders’ account balances, Policy and contract claims, Deposit liabilities and Market risk benefits) are subject to interest rate risk exposure. If interest rates were to increase by 50 basis points from levels at December 31, 2025 and 2024 through a parallel shift in the yield curve, we estimate that (i) the fair value of our fixed maturity securities would decrease by approximately $1.7 billion and $1.1 billion in 2025 and 2024 respectively; and (ii) the carrying amount of our insurance-related liabilities (net of reinsurance) would increase by approximately $1.1 billion and $936 million in 2025 and 2024, respectively. The net impact on total equity (net of income taxes) would be a decrease of approximately $463 million and $130 million in 2025 and 2024, respectively. The models used to estimate the impact of an increase in market interest rates by 50 basis points incorporate numerous assumptions, require significant estimates and assume an immediate and parallel change in interest rates without any management of the investment portfolio in reaction to such change. Consequently, potential changes in the value of our financial instruments and our insurance-related liabilities indicated by the simulations will likely be different from the actual changes experienced under given interest rate scenarios, and the differences may be material. Because we actively manage our investments and liabilities, our net exposure to interest rates can vary over time. However, any such decreases in the fair value of our fixed maturity securities (unless related to credit concerns of the issuer requiring recognition of a credit loss) would generally be realized only if we were required to sell such securities at losses prior to their maturity to meet our liquidity needs, which we proactively manage. See the “Liquidity and Capital Resources” section within this MD&A for a further discussion on our liquidity. Other Price Risk Other price risk is the risk of variability in fair value due to movements in equity prices or other market prices such as commodity prices and credit spreads. The Company’s exposure to the equity markets is managed by sector and individual security, and the Company mitigates the equity price risk by diversification of the investment portfolio. The Company also has equity price risk associated with the equity-indexed life and annuity products the Company issues and assumes. The Company has entered into derivative transactions, primarily over-the-counter equity call options, to hedge the exposure to equity-index changes and thus has excluded equity-index changes and related derivatives from the sensitivity. Assuming all other factors are constant, if there was a decline in public equity market prices of 10% as of December 31, 2025 and 2024, we estimate a net decrease to our point-in-time net income (loss) from changes in the fair value of our financial instruments, which are primarily public equity investments, of approximately $545 million and $230 million respectively. The financial instruments included in the sensitivity analysis are carried at fair value, and changes in fair value are recognized in the statements of operations. Credit Risk Credit risk is the risk of loss from amounts owed by counterparties and arises any time funds are extended, committed, owed or invested through actual or implied contractual arrangements including reinsurance. The Company is primarily exposed to credit risk through its fixed income investments, which include debt securities and private loans. Page 86 Table of Contents We manage exposure to credit risk by establishing concentration limits by counterparty, credit rating and asset class. To further minimize credit risk, the financial condition of the counterparties is monitored on a regular basis. These requirements are outlined in our investment policy. Insurance Risk The Company makes assumptions and estimates when assessing insurance and reinsurance risks, and significant deviations, particularly with regards to mortality, morbidity, longevity and other policyholder behavior, could adversely affect our business, financial condition, results of operations, liquidity and cash flows. All transaction terms are likely to be determined by qualitative and quantitative factors, including our estimates. If we reinsure a block of business, there can be no assurance that the transaction will achieve the results expected at the time of the block’s acquisition. These transactions expose us to the risk that actual results materially differ from those estimates. We manage insurance risk through choosing whether to purchase reinsurance for certain amounts of risk underwritten across our Annuities, P&C and Life Insurance segments, and we may also look to further reinsure certain amounts of risk we assume under our reinsurance agreements in these segments. Legal Risk In the future, we may be parties in actions that routinely arise out of the normal course of business, including legal actions seeking to establish liability directly through insurance contracts or indirectly through reinsurance contracts issued by our subsidiaries. Plaintiffs occasionally seek punitive or exemplary damages. We do not believe that such normal and routine litigation will have a material effect on our financial condition or results of operations. We are also involved from time to time in other kinds of legal actions, some of which assert or may assert claims or seek to impose fines and penalties. We believe that any liability that may arise as a result of other pending legal actions will not have a material effect on our financial statements. Operational Risk Operational risk is the potential for loss resulting from inadequate or failed internal processes, people and systems, or from external events. The Company’s internal control processes are supported by the maintenance of a risk register and independent internal audit review. The risk of fraud is managed through a number of processes including background checks on staff on hire, annual code of conduct confirmations, anti-bribery training and segregation of duties. We have material outsourcing arrangements in respect of pension administration and other functions. These arrangements are subject to agreements with formal service levels, operate within agreed authority limits and are subject to regular review by senior management. Material outsourcing arrangements are approved and monitored by the Board of Directors. Disaster recovery and business continuity plans have also been established to manage the Company’s ability to operate under adverse conditions. Critical Accounting Estimates The preparation of the financial statements requires management to make critical judgments, estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses that are not readily apparent from other sources, during the reporting period. These estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates. The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognized in the year in which the estimate is revised if the revision affects only that year or in the year of the revision and future years if the revision affects both current and future years. Critical judgments made by management and used in preparing the financial statements, are summarized below: Fair value of investments – In determining fair value of our investments in our consolidated financial statements, we perform regular analysis and review of our valuation techniques, assumptions and inputs to evaluate if the valuation approaches are appropriate and consistently applied and if the various assumptions are reasonable. Investments categorized as Level 3 in the fair value hierarchy are subject to significant management judgment and estimation due to the use of significant unobservable inputs. Where appropriate, we assess the reasonableness of unobservable inputs and assumptions used in the fair value measurement. For example, we validate the reasonableness of quotes from independent pricing sources and broker price opinions received by performing a market-based fair value analysis. For investments fair valued using a discounted cash flow methodology, we perform a review of the cash flow models for reasonability. Valuation methodologies, assumptions and inputs utilized in the valuation of our investments recorded at fair value in the statements of financial position are described in Note 11, “Fair Value of Financial Instruments” in the notes to the consolidated financial statements. Page 87 Table of Contents Value of business acquired (“VOBA”) – VOBA is an intangible asset or liability resulting from a business combination that represents the difference between the policyholder liabilities measured in accordance with the acquiring company’s accounting policies and the estimated fair value of the same acquired policyholder liabilities in-force at the acquisition date. The estimated fair value of the acquired liabilities upon the acquisition includes assumptions on discount rate and the net investment earned rate. These assumptions are subject to inherent uncertainties and involve a significant level of management judgment and estimation and may have a material impact on our financial condition upon the initial recognition of VOBA. Refer to Note 16, “Acquisitions” in the notes to the consolidated financial statements for additional details on VOBA. Future policy benefits (“FPB”) – Relate to long duration insurance contracts such as deferred and immediate annuities with life contingencies, including our PRT contracts, and certain life products. Assumptions used in the establishment of the FPB, inclusive of associated reinsurance balances, include longevity, mortality and lapse rates as well as discount rates, which require significant judgment and may materially impact the valuation of these liabilities. The Company reviews and updates cash flow assumptions, including significant policyholder behavior assumptions, at least annually during the third quarter of each year, and at the same time every year by cohort or product. The Company also reviews more frequently and updates its cash flow assumptions during an interim period if evidence suggests cash flow assumptions should be revised. Embedded derivatives in policyholders’ account balances (“PAB”) – Our PAB liabilities relate to investment-type contracts and universal life-type policies. Our indexed product account balances with returns linked to the performance of a specified market index (e.g., fixed index annuity contracts and equity-indexed universal life policies) include an embedded derivative that is bifurcated from the host (or guaranteed) component of the contracts. The fair value of the embedded derivatives is estimated at each valuation date by (i) projecting policy contract values and minimum guaranteed contract values over the expected lives of the contracts and (ii) discounting the excess of the projected contract value amounts at the applicable risk free interest rates adjusted for the Company’s non-performance risk related to those liabilities. Significant assumptions include option budget, lapse rates and non-performance risk. Market risk benefits (“MRB”) – Relate to certain fixed index annuity and fixed rate annuity contracts that provide minimum guarantees to policyholders including guaranteed minimum withdrawal benefits and guaranteed minimum death benefits. MRBs are fair valued using stochastic models that incorporate a spread reflecting our non-performance risk. The actuarial assumptions used in the MRB calculation are best estimate assumptions based on a combination of historical data and actuarial judgment. Significant assumptions include utilization, option budget, non-performance risk as well as mortality and lapse rates. Liabilities for unpaid claims and claim adjustment expenses (“CAE”) – Relate to our P&C segment and include estimates for both case reserves and incurred but not reported claims (“IBNR”) liabilities. Because the ultimate resolution of claims can span over a long period of time, the process to determine these reserves is inherently subject to significant estimation uncertainty. The estimation of our IBNR liabilities involves the use of a variety of actuarial techniques that are based on our historical experience, considering the effects of current developments and anticipated trends. Actuarial assumptions for loss development patterns such as expected loss ratios, settlement patterns and weighting of actuarial methodologies require a significant level of management judgment, particularly for those with significant claims reporting lags where a small change in actuarial assumptions may result in material fluctuations in the estimated ultimate liability. Deferred income tax – We account for income taxes under the asset and liability method, which requires the recognition of deferred tax assets (“DTAs”) and deferred tax liabilities (“DTLs”) for the expected future tax consequences of events that have been included in the financial statements. We recognize DTAs to the extent that management believes that these assets are more likely than not to be realized, considering, among other items, projections of future taxable income. Accordingly, the estimation of DTAs including valuation allowance require significant management judgment. Additionally, actual realization of DTAs and DTLs may materially differ from these estimates as a result of changes in tax laws as well as unanticipated future transactions impacting related income tax balances. Performance Measures Used by Management To measure performance, we focus on net income and total assets, as well as certain Non-GAAP measures, including DOE, Total Corporate Liquidity, Total Liquidity and Adjusted Equity which we believe are useful to investors to provide additional insights into assets within the business available for redeployment. Refer to the “Segment Review” and “Liquidity and Capital Resources” sections of this MD&A for further discussion on our performance and Non-GAAP measures for the years ended December 31, 2025, 2024 and 2023. Page 88 Table of Contents Non-GAAP Measures We regularly monitor certain Non-GAAP measures that are used to evaluate our performance and analyze underlying business performance and trends. We use these measures to establish budgets and operational goals, manage our business and evaluate our performance. We also believe that these measures help investors compare our operating performance with our results in prior years. These Non-GAAP financial measures are provided as supplemental information to the financial measures presented in this MD&A that are calculated and presented in accordance with GAAP. These Non-GAAP measures are not comparable to GAAP and may not be comparable to similarly described Non-GAAP measures reported by other companies, including those within our industry. Consequently, our Non-GAAP measures should not be evaluated in isolation, but rather, should be considered together with the most directly comparable GAAP measure in our financial statements for the periods presented. The Non-GAAP financial measures we present in this MD&A should not be considered a substitute for, or superior to, financial measures determined or calculated in accordance with GAAP. Distributable Operating Earnings We use DOE to assess operating results and the performance of our businesses. We define DOE as net income after applicable taxes excluding the impact of depreciation and amortization, deferred income taxes related to basis and other changes, and breakage and transaction costs, as well as certain investment and insurance reserve gains and losses, including gains and losses related to asset and liability matching strategies, non-operating adjustments related to changes in cash flow assumptions for future policy benefits and change in market risk benefits, and is inclusive of returns on equity invested in certain variable interest entities and our share of adjusted earnings from our investments in certain associates. DOE is a measure of operating performance that is not calculated in accordance with, and does not have any standardized meaning prescribed by GAAP. DOE is therefore unlikely to be comparable to similar measures presented by other issuers. We believe our presentation of DOE is useful to investors because it supplements investors’ understanding of our operating performance by providing information regarding our ongoing performance that excludes items we believe do not directly affect our core operations. Our presentation of DOE also provides investors enhanced comparability of our ongoing performance across years. Adjusted Equity Adjusted Equity represents the total economic equity of our company through our class A, B and C shares, excluding the impact of accumulated other comprehensive income and the accumulated after tax impact of certain adjustments related to mark-to-market gains and losses on investments, derivatives and insurance contracts. We use Adjusted Equity to assess our return on our equity and believe it supplements investors’ understanding of our operating performance by providing information regarding our ongoing performance that excludes items we believe do not directly affect our core operations. For comparability with peers and to align with our measure of operating performance, we changed the composition of Adjusted Equity in the second quarter of 2025 to exclude non-controlling interest and the accumulated after tax impact of certain investment and insurance reserve gains and losses. We have restated all applicable comparative information. Total Corporate Liquidity and Total Liquidity Corporate Liquidity is a measure of our liquidity position and includes cash and cash equivalents, undrawn revolving credit facilities and liquid financial assets held by non-regulated corporate entities. Total Liquidity includes liquidity within our regulated insurance entities. Page 89 Table of Contents The following contains further details regarding our use of the Non-GAAP measures, as well as a reconciliation of GAAP consolidated net income and total equity to these measures: Reconciliation of Non-GAAP Measures The following table reconciles our net income to DOE: FOR THE YEARS ENDED DEC. 31 US$ MILLIONS 2025 2024 2023 Net income $ 863 $ 1,247 $ 797 Mark-to-market losses (gains) on investments, including reinsurance funds withheld(1) 51 (283) (36) Mark-to-market losses (gains) on insurance contracts and other net assets(2)(3) 717 257 (100) Deferred income tax expense (recovery) relating to basis and other changes (269) (195) 14 Transaction costs 104 213 40 Depreciation and amortization expenses 233 135 30 DOE $ 1,699 $ 1,374 $ 745 __________________________ (1)“Mark-to-market losses (gains) on investments, including reinsurance funds withheld” primarily represent mark-to-market gains or losses on our investments and reinsurance funds withheld. Mark-to-market gains or losses on our investments are presented as “Investment related gains (losses)” on the statements of operations. See Note 10, “Net Investment Income and Investment Related Gains (Losses)” in the notes to the consolidated financial statements for additional details. Mark-to-market gains or losses on reinsurance funds withheld are included in “Net investment results from reinsurance funds withheld” and represent the change in fair value of their embedded derivative during the period. See Note 9, “Derivative Instruments” in the notes to the consolidated financial statements for additional details. (2)“Mark-to-market losses (gains) on insurance contracts and other net assets” principally represents the mark-to-market effect on insurance-related liabilities, net of reinsurance, due to changes in market risks (e.g., interest rates, equity markets and equity index volatility). These mark-to-market effects are primarily included in “Interest sensitive contract benefits”, “Change in fair value of insurance-related derivatives and embedded derivatives” and “Change in fair value of market risk benefits” on the statements of operations. See the following notes to the consolidated financial statements for additional information: (i) Note 9, “Derivative Instruments”; (ii) Note 18, “Policyholders’ Account Balances”; and (iii) Note 19, “Market Risk Benefits”. (3)Included in “Mark-to-market losses (gains) on insurance contracts and other net assets” are “returns on equity invested in certain variable interest entities” and “our share of adjusted earnings from our investments in certain associates” as stated in the definition of DOE. “Returns on equity invested in certain variable interest entities” primarily represent equity-accounted income from our investments in real estate partnerships and investment funds and are included in “Net investment income” on the statements of operations. Additionally, “our share of adjusted earnings from our investments in certain associates” represents our share of DOE from AEL following the announcement of our acquisition in the third quarter of 2023, which is no longer applicable given our acquisition of AEL in May 2024. The following table reconciles our GAAP total equity to Adjusted Equity: AS OF DEC. 31 US$ MILLIONS 2025 2024 Total equity $ 17,917 $ 13,076 Less: Accumulated other comprehensive income (1,121) (204) Non-controlling interests (331) (850) Accumulated unrealized mark-to-market losses (gains), net of tax 372 (262) Adjusted Equity $ 16,837 $ 11,760 ITEM 5.B LIQUIDITY AND CAPITAL RESOURCES See Item 5.A “Operating Results – Liquidity and Capital Resources” ITEM 5.C RESEARCH AND DEVELOPMENT, PATENTS AND LICENSES, ETC. None. ITEM 5.D TREND INFORMATION See Item 5.A “Operating Results — Industry Trends and Factors Affecting Our Performance” ITEM 5.E CRITICAL ACCOUNTING ESTIMATES See Item 5.A “Operating Results — Critical Accounting Estimates” ITEM 6 DIRECTORS, SENIOR MANAGEMENT AND EMPLOYEES Page 90 Table of Contents