Talcott Resolution Life & Annuity Insurance Separate Account Ten Co.

04/20/2026 | Press release | Distributed by Public on 04/20/2026 09:52

Financial Statements by Insurance Company (Form N-VPFS)


REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
To the Contract Owners of
Separate Account Ten of Talcott Resolution Life and Annuity Insurance Company and the
Board of Directors of Talcott Resolution Life Insurance Company

Opinion on the Financial Statements and Financial Highlights
We have audited the accompanying statements of assets and liabilities of each of the Sub-Accounts of Separate Account Ten of Talcott Resolution Life and Annuity Insurance Company (the "Account") listed in Note 1 (collectively, the "Sub-Accounts"), as of December 31, 2025, the related statements of operations for the year then ended, the statements of changes in net assets for each of the two years in the period then ended, the financial highlights for each of the five years in the period then ended, and the related notes. In our opinion, the financial statements and financial highlights present fairly, in all material respects, the financial position of each of the Sub-Accounts as of December 31, 2025, and the results of their operations for the year then ended, the changes in their net assets for each of the two years in the period then ended, and the financial highlights for each of the five years in the period then ended, in conformity with accounting principles generally accepted in the United States of America.
Basis for Opinion
These financial statements and financial highlights are the responsibility of the Account's management. Our responsibility is to express an opinion on the Account's financial statements and financial highlights based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Account in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.
We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement, whether due to error or fraud. The Account is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. As part of our audits, we are required to obtain an understanding of internal control over financial reporting but not for the purpose of expressing an opinion on the effectiveness of the Account's internal control over financial reporting. Accordingly, we express no such opinion.
Our audits included performing procedures to assess the risks of material misstatement of the financial statements and financial highlights, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements and financial highlights. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements and financial highlights. Our procedures included confirmation of securities owned as of December 31, 2025, by correspondence with the Account's custodian or mutual fund companies. We believe that our audits provide a reasonable basis for our opinion.

/s/ Deloitte & Touche LLP
Hartford, Connecticut
April 17, 2026
We have served as the auditor of Separate Account Ten of Talcott Resolution Life and Annuity Insurance Company since 2002.


SEPARATE ACCOUNT TEN
Talcott Resolution Life and Annuity Insurance Company
Statements of Assets and Liabilities
December 31, 2025
Putnam VT Sustainable Future Fund Putnam VT Mortgage Securities Fund Putnam VT Diversified Income Fund Putnam VT Global Asset Allocation Fund Putnam VT Focused International Equity Fund Putnam VT Large Cap Growth Fund Putnam VT Global Health Care Fund Putnam VT High Yield Fund Putnam VT Income Fund Putnam VT International Value Fund
Sub-Account Sub-Account Sub-Account Sub-Account Sub-Account Sub-Account Sub-Account Sub-Account Sub-Account Sub-Account
Assets:
Investments, at fair value
class IA $ 9,946,238 $ 6,504,726 $ 18,159,186 $ 30,602,614 $ 61,099,643 $ 337,440,859 $ 17,347,254 $ 20,828,976 $ 22,914,025 $ 17,706,731
class IB 1,197,870 1,266,591 1,562,885 1,133,298 950,089 9,904,134 1,036,227 1,281,089 2,840,368 1,668,383
Total investments 11,144,108 7,771,317 19,722,071 31,735,912 62,049,732 347,344,993 18,383,481 22,110,065 25,754,393 19,375,114
Receivable for fund shares sold 480 437 14,099 4,876 13,539 166,441 1,308 8,309 2,947 2,265
Other assets - 1 - 1 - 2 - - - 1
Total assets 11,144,588 7,771,755 19,736,170 31,740,789 62,063,271 347,511,436 18,384,789 22,118,374 25,757,340 19,377,380
Liabilities:
Due to Sponsor Company 480 437 14,099 4,876 13,539 166,441 1,308 8,309 2,947 2,265
Other liabilities - - - - 1 - 1 1 1 -
Total liabilities 480 437 14,099 4,876 13,540 166,441 1,309 8,310 2,948 2,265
Net assets:
For contract liabilities $ 11,144,108 $ 7,771,318 $ 19,722,071 $ 31,735,913 $ 62,049,731 $ 347,344,995 $ 18,383,480 $ 22,110,064 $ 25,754,392 $ 19,375,115
Contract Liabilities:
class IA $ 9,946,238 $ 6,504,727 $ 18,159,186 $ 30,602,614 $ 61,099,642 $ 337,440,861 $ 17,347,253 $ 20,828,975 $ 22,914,024 $ 17,706,731
class IB 1,197,870 1,266,591 1,562,885 1,133,299 950,089 9,904,134 1,036,227 1,281,089 2,840,368 1,668,384
Total contract liabilities $ 11,144,108 $ 7,771,318 $ 19,722,071 $ 31,735,913 $ 62,049,731 $ 347,344,995 $ 18,383,480 $ 22,110,064 $ 25,754,392 $ 19,375,115
Shares:
class IA 664,412 1,044,097 3,880,168 1,571,783 3,142,986 18,240,047 969,663 3,585,022 2,760,726 1,098,433
class IB 81,432 204,289 331,823 57,007 49,795 563,375 61,643 223,186 346,809 105,194
Total shares 745,844 1,248,386 4,211,991 1,628,790 3,192,781 18,803,422 1,031,306 3,808,208 3,107,535 1,203,627
Cost $ 11,524,409 $ 10,384,752 $ 27,649,445 $ 25,651,110 $ 47,171,466 $ 192,726,088 $ 15,355,370 $ 29,220,972 $ 34,040,136 $ 12,751,777
Deferred contracts in the accumulation period:
Units owned by participants # 183,073 410,120 709,753 311,982 872,246 8,967,032 328,361 295,174 623,599 485,346
Minimum unit fair value #* $ 46.118898 $ 12.820171 $ 16.679125 $ 22.138970 $ 12.297244 $ 25.663458 $ 31.436282 $ 23.626497 $ 14.619949 $ 20.127224
Maximum unit fair value #* $ 68.520430 $ 21.497561 $ 29.450633 $ 106.716539 $ 71.033656 $ 111.412390 $ 66.061088 $ 79.430275 $ 44.609478 $ 42.480146
Contract liability $ 11,057,543 $ 7,596,942 $ 19,372,314 $ 31,124,314 $ 60,353,450 $ 340,544,405 $ 18,146,288 $ 21,494,865 $ 25,144,133 $ 19,044,554
Contracts in payout (annuitization) period:
Units owned by participants # 1,411 9,346 12,498 6,085 24,482 178,851 4,345 8,163 14,445 8,129
Minimum unit fair value #* $ 54.647021 $ 15.617250 $ 22.155757 $ 29.906285 $ 14.584122 $ 30.435402 $ 35.435759 $ 28.302757 $ 17.513878 $ 23.601206
Maximum unit fair value #* $ 61.876266 $ 19.131600 $ 29.450633 $ 106.716539 $ 71.033656 $ 39.704678 $ 55.798804 $ 76.249902 $ 44.609478 $ 40.836338
Contract liability $ 86,565 $ 174,376 $ 349,757 $ 611,599 $ 1,696,281 $ 6,800,590 $ 237,192 $ 615,199 $ 610,259 $ 330,561
# Rounded units/unit fair values
* For Sub-Accounts with only one unit fair value, the unit fair value is illustrated in both the minimum and maximum unit fair value rows.
The accompanying notes are an integral part of these financial statements.



















SEPARATE ACCOUNT TEN
Talcott Resolution Life and Annuity Insurance Company
Statements of Assets and Liabilities (concluded)
December 31, 2025
Putnam VT International Equity Fund Putnam VT Emerging Markets Equity Fund Putnam VT Core Equity Fund Putnam VT Government Money Market Fund Putnam VT Sustainable Leaders Fund Putnam VT Research Fund Putnam VT Small Cap Value Fund Putnam VT George Putnam Balanced Fund Putnam VT Small Cap Growth Fund Putnam VT Large Cap Value Fund
Sub-Account Sub-Account Sub-Account Sub-Account Sub-Account Sub-Account Sub-Account Sub-Account Sub-Account Sub-Account
Assets:
Investments, at fair value
class IA $ 26,865,995 $ 9,538,615 $ 37,235,635 $ 18,657,839 $ 188,818,379 $ 12,360,065 $ 17,919,576 $ 36,633,756 $ 8,310,855 $ 411,322,870
class IB 2,287,095 221,592 3,726,537 861,352 7,025,398 1,338,418 2,159,960 2,585,346 897,008 15,019,521
Total investments 29,153,090 9,760,207 40,962,172 19,519,191 195,843,777 13,698,483 20,079,536 39,219,102 9,207,863 426,342,391
Receivable for fund shares sold 22,782 956 23,014 3,229 125,080 709 931 5,941 593 255,975
Other assets - - - 9 - - - - - -
Total assets 29,175,872 9,761,163 40,985,186 19,522,429 195,968,857 13,699,192 20,080,467 39,225,043 9,208,456 426,598,366
Liabilities:
Due to Sponsor Company 22,782 956 23,014 3,229 125,080 709 931 5,941 593 255,975
Other liabilities - - 1 - 1 1 - 1 - 1
Total liabilities 22,782 956 23,015 3,229 125,081 710 931 5,942 593 255,976
Net assets:
For contract liabilities $ 29,153,090 $ 9,760,207 $ 40,962,171 $ 19,519,200 $ 195,843,776 $ 13,698,482 $ 20,079,536 $ 39,219,101 $ 9,207,863 $ 426,342,390
Contract Liabilities:
class IA $ 26,865,994 $ 9,538,616 $ 37,235,633 $ 18,657,846 $ 188,818,378 $ 12,360,065 $ 17,919,576 $ 36,633,755 $ 8,310,855 $ 411,322,870
class IB 2,287,096 221,591 3,726,538 861,354 7,025,398 1,338,417 2,159,960 2,585,346 897,008 15,019,520
Total contract liabilities $ 29,153,090 $ 9,760,207 $ 40,962,171 $ 19,519,200 $ 195,843,776 $ 13,698,482 $ 20,079,536 $ 39,219,101 $ 9,207,863 $ 426,342,390
Shares:
class IA 1,335,952 368,002 1,575,112 18,657,839 3,873,993 258,958 1,614,377 2,139,822 370,689 11,321,851
class IB 115,452 8,656 157,904 861,352 151,736 28,261 199,811 152,169 41,625 420,833
Total shares 1,451,404 376,658 1,733,016 19,519,191 4,025,729 287,219 1,814,188 2,291,991 412,314 11,742,684
Cost $ 18,742,357 $ 5,965,102 $ 28,662,139 $ 19,519,191 $ 116,071,001 $ 6,467,076 $ 20,159,983 $ 26,149,705 $ 7,232,467 $ 279,660,761
Deferred contracts in the accumulation period:
Units owned by participants # 691,189 304,255 744,346 11,098,069 1,554,352 180,886 284,977 1,056,994 133,312 5,102,925
Minimum unit fair value #* $ 13.426743 $ 9.655093 $ 5.090696 $ 0.876419 $ 19.621151 $ 39.179347 $ 41.558092 $ 25.641980 $ 52.197034 $ 57.976906
Maximum unit fair value #* $ 45.409392 $ 32.554354 $ 79.651274 $ 12.109547 $ 137.379239 $ 77.397788 $ 83.712936 $ 41.185099 $ 77.662374 $ 90.893979
Contract liability $ 28,696,857 $ 9,709,541 $ 40,015,857 $ 19,272,654 $ 193,249,922 $ 13,542,839 $ 19,651,481 $ 38,056,065 $ 9,174,924 $ 416,750,481
Contracts in payout (annuitization) period:
Units owned by participants # 10,570 1,639 17,318 145,121 20,140 2,097 6,213 32,261 484 117,248
Minimum unit fair value #* $ 16.791791 $ 18.612963 $ 34.319298 $ 1.105796 $ 23.269672 $ 44.261343 $ 55.263050 $ 30.717631 $ 61.848431 $ 72.444220
Maximum unit fair value #* $ 43.641548 $ 33.819797 $ 55.626770 $ 1.766000 $ 132.224856 $ 77.397788 $ 70.309400 $ 36.197291 $ 70.132079 $ 85.866070
Contract liability $ 456,233 $ 50,666 $ 946,314 $ 246,546 $ 2,593,854 $ 155,643 $ 428,055 $ 1,163,036 $ 32,939 $ 9,591,909
# Rounded units/unit fair values
* For Sub-Accounts with only one unit fair value, the unit fair value is illustrated in both the minimum and maximum unit fair value rows.
The accompanying notes are an integral part of these financial statements.



SEPARATE ACCOUNT TEN
Talcott Resolution Life and Annuity Insurance Company
Statements of Operations
For the Periods Ended December 31, 2025
Putnam VT Sustainable Future Fund Putnam VT Mortgage Securities Fund Putnam VT Diversified Income Fund Putnam VT Global Asset Allocation Fund Putnam VT Focused International Equity Fund Putnam VT Large Cap Growth Fund Putnam VT Global Health Care Fund Putnam VT High Yield Fund Putnam VT Income Fund Putnam VT International Value Fund
Sub-Account Sub-Account Sub-Account Sub-Account Sub-Account Sub-Account Sub-Account Sub-Account Sub-Account Sub-Account
Investment income:
Dividends $ 37,649 $ 664,350 $ 1,298,396 $ 791,557 $ 1,942,431 $ - $ - $ 1,436,142 $ 1,348,018 $ 257,173
Expenses:
Administrative charges (17,435) (10,743) (29,191) (47,052) (84,917) (499,336) (25,840) (32,650) (39,085) (27,134)
Mortality and expense risk charges (155,073) (102,013) (256,297) (402,502) (715,087) (4,240,473) (230,950) (281,902) (340,336) (235,573)
Total expenses (172,508) (112,756) (285,488) (449,554) (800,004) (4,739,809) (256,790) (314,552) (379,421) (262,707)
Net investment income (loss) (134,859) 551,594 1,012,908 342,003 1,142,427 (4,739,809) (256,790) 1,121,590 968,597 (5,534)
Net realized and unrealized gain (loss) on investments:
Net realized gain (loss) on security transactions (75,635) (640,995) (1,526,139) 871,133 922,083 18,210,921 219,031 (1,115,608) (1,545,295) 712,971
Net realized gain distributions 1,665,121 - - 3,824,776 - 30,092,311 1,226,596 - - 159,485
Change in unrealized appreciation (depreciation) during the period (1,330,709) 656,702 1,934,241 (1,142,213) 14,845,879 (2,296,692) 1,104,635 1,561,190 2,098,562 4,270,403
Net gain (loss) on investments 258,777 15,707 408,102 3,553,696 15,767,962 46,006,540 2,550,262 445,582 553,267 5,142,859
Net increase (decrease) in net assets resulting from operations $ 123,918 $ 567,301 $ 1,421,010 $ 3,895,699 $ 16,910,389 $ 41,266,731 $ 2,293,472 $ 1,567,172 $ 1,521,864 $ 5,137,325
The accompanying notes are an integral part of these financial statements.

SEPARATE ACCOUNT TEN
Talcott Resolution Life and Annuity Insurance Company
Statements of Operations (concluded)
For the Periods Ended December 31, 2025
Putnam VT International Equity Fund Putnam VT Emerging Markets Equity Fund Putnam VT Core Equity Fund Putnam VT Government Money Market Fund Putnam VT Sustainable Leaders Fund Putnam VT Research Fund Putnam VT Small Cap Value Fund Putnam VT George Putnam Balanced Fund Putnam VT Small Cap Growth Fund Putnam VT Large Cap Value Fund
Sub-Account Sub-Account Sub-Account Sub-Account Sub-Account Sub-Account Sub-Account Sub-Account Sub-Account Sub-Account
Investment income:
Dividends $ 57,053 $ 78,629 $ 253,688 $ 812,688 $ 1,697,264 $ 98,914 $ 179,496 $ 622,658 $ 50,881 $ 6,609,009
Expenses:
Administrative charges (39,235) (13,052) (57,714) (30,886) (284,275) (19,001) (28,825) (57,038) (13,754) (612,165)
Mortality and expense risk charges (342,625) (112,269) (513,606) (264,797) (2,446,282) (166,929) (256,062) (490,813) (121,131) (5,165,055)
Total expenses (381,860) (125,321) (571,320) (295,683) (2,730,557) (185,930) (284,887) (547,851) (134,885) (5,777,220)
Net investment income (loss) (324,807) (46,692) (317,632) 517,005 (1,033,293) (87,016) (105,391) 74,807 (84,004) 831,789
Net realized and unrealized gain (loss) on investments:
Net realized gain (loss) on security transactions 1,031,151 425,830 1,748,694 - 11,752,525 1,127,087 (198,970) 1,846,806 358,507 17,785,181
Net realized gain distributions 1,631,212 - 3,467,981 - 22,045,782 804,867 1,803,138 1,426,594 586,252 27,755,827
Change in unrealized appreciation (depreciation) during the period 5,739,449 2,116,832 778,097 - (15,656,201) 145,349 (751,925) 1,296,262 (222,582) 25,035,277
Net gain (loss) on investments 8,401,812 2,542,662 5,994,772 - 18,142,106 2,077,303 852,243 4,569,662 722,177 70,576,285
Net increase (decrease) in net assets resulting from operations $ 8,077,005 $ 2,495,970 $ 5,677,140 $ 517,005 $ 17,108,813 $ 1,990,287 $ 746,852 $ 4,644,469 $ 638,173 $ 71,408,074
The accompanying notes are an integral part of these financial statements.




SEPARATE ACCOUNT TEN
Talcott Resolution Life and Annuity Insurance Company
Statements of Changes in Net Assets
For the Periods Ended December 31, 2025
Putnam VT Sustainable Future Fund Putnam VT Mortgage Securities Fund Putnam VT Diversified Income Fund Putnam VT Global Asset Allocation Fund Putnam VT Focused International Equity Fund Putnam VT Large Cap Growth Fund Putnam VT Global Health Care Fund Putnam VT High Yield Fund Putnam VT Income Fund Putnam VT International Value Fund
Sub-Account Sub-Account Sub-Account Sub-Account Sub-Account Sub-Account Sub-Account Sub-Account Sub-Account Sub-Account
Operations:
Net investment income (loss) $ (134,859) $ 551,594 $ 1,012,908 $ 342,003 $ 1,142,427 $ (4,739,809) $ (256,790) $ 1,121,590 $ 968,597 $ (5,534)
Net realized gain (loss) on security transactions (75,635) (640,995) (1,526,139) 871,133 922,083 18,210,921 219,031 (1,115,608) (1,545,295) 712,971
Net realized gain distributions 1,665,121 - - 3,824,776 - 30,092,311 1,226,596 - - 159,485
Change in unrealized appreciation (depreciation) during the period (1,330,709) 656,702 1,934,241 (1,142,213) 14,845,879 (2,296,692) 1,104,635 1,561,190 2,098,562 4,270,403
Net increase (decrease) in net assets resulting from operations 123,918 567,301 1,421,010 3,895,699 16,910,389 41,266,731 2,293,472 1,567,172 1,521,864 5,137,325
Unit transactions:
Purchases 28,035 98,153 152,854 573,752 335,218 2,652,160 125,495 217,515 359,792 63,940
Net transfers (165,879) 60,410 712,365 156,437 (145,761) (4,020,882) (187,304) (68,072) 539,772 (49,632)
Surrenders for benefit payments and fees (931,647) (525,652) (1,773,372) (2,911,291) (4,064,424) (25,441,328) (1,787,183) (1,634,124) (2,388,499) (1,506,470)
Other transactions 636 (847) 77 21 551 27,021 1,072 (19) 1,656 (210)
Death benefits (354,599) (494,834) (1,216,212) (2,137,024) (2,253,431) (10,719,387) (314,937) (772,630) (1,716,073) (580,680)
Net annuity transactions (10,909) (13,032) (20,017) (31,903) (128,307) (263,578) (47,723) 7,429 (44,971) 4,814
Net increase (decrease) in net assets resulting from unit transactions (1,434,363) (875,802) (2,144,305) (4,350,008) (6,256,154) (37,765,994) (2,210,580) (2,249,901) (3,248,323) (2,068,238)
Net increase (decrease) in net assets (1,310,445) (308,501) (723,295) (454,309) 10,654,235 3,500,737 82,892 (682,729) (1,726,459) 3,069,087
Net assets:
Beginning of period 12,454,553 8,079,819 20,445,366 32,190,222 51,395,496 343,844,258 18,300,588 22,792,793 27,480,851 16,306,028
End of period $ 11,144,108 $ 7,771,318 $ 19,722,071 $ 31,735,913 $ 62,049,731 $ 347,344,995 $ 18,383,480 $ 22,110,064 $ 25,754,392 $ 19,375,115
The accompanying notes are an integral part of these financial statements.

SEPARATE ACCOUNT TEN
Talcott Resolution Life and Annuity Insurance Company
Statements of Changes in Net Assets (concluded)
For the Periods Ended December 31, 2025
Putnam VT International Equity Fund Putnam VT Emerging Markets Equity Fund Putnam VT Core Equity Fund Putnam VT Government Money Market Fund Putnam VT Sustainable Leaders Fund Putnam VT Research Fund Putnam VT Small Cap Value Fund Putnam VT George Putnam Balanced Fund Putnam VT Small Cap Growth Fund Putnam VT Large Cap Value Fund
Sub-Account Sub-Account Sub-Account Sub-Account Sub-Account Sub-Account Sub-Account Sub-Account Sub-Account Sub-Account
Operations:
Net investment income (loss) $ (324,807) $ (46,692) $ (317,632) $ 517,005 $ (1,033,293) $ (87,016) $ (105,391) $ 74,807 $ (84,004) $ 831,789
Net realized gain (loss) on security transactions 1,031,151 425,830 1,748,694 - 11,752,525 1,127,087 (198,970) 1,846,806 358,507 17,785,181
Net realized gain distributions 1,631,212 - 3,467,981 - 22,045,782 804,867 1,803,138 1,426,594 586,252 27,755,827
Change in unrealized appreciation (depreciation) during the period 5,739,449 2,116,832 778,097 - (15,656,201) 145,349 (751,925) 1,296,262 (222,582) 25,035,277
Net increase (decrease) in net assets resulting from operations 8,077,005 2,495,970 5,677,140 517,005 17,108,813 1,990,287 746,852 4,644,469 638,173 71,408,074
Unit transactions:
Purchases 240,542 17,781 114,709 359,682 1,275,376 177,797 62,576 80,059 118,519 3,929,111
Net transfers 90,556 (30,040) (444,416) 4,611,280 (2,245,728) (279,443) 77,256 1,130,481 (209,579) (3,003,565)
Surrenders for benefit payments and fees (1,638,066) (667,369) (3,237,074) (4,948,413) (18,063,728) (800,815) (1,002,367) (3,698,816) (757,452) (33,625,553)
Other transactions 369 926 409 1,395 3,186 1,062 531 188 1 13,487
Death benefits (1,232,372) (286,666) (1,899,907) (2,119,650) (8,016,985) (796,333) (898,033) (2,115,042) (443,340) (21,185,262)
Net annuity transactions (62,402) (4,729) (166,867) (175,713) (160,318) (37,122) (39,347) (101,420) 784 (449,495)
Net increase (decrease) in net assets resulting from unit transactions (2,601,373) (970,097) (5,633,146) (2,271,419) (27,208,197) (1,734,854) (1,799,384) (4,704,550) (1,291,067) (54,321,277)
Net increase (decrease) in net assets 5,475,632 1,525,873 43,994 (1,754,414) (10,099,384) 255,433 (1,052,532) (60,081) (652,894) 17,086,797
Net assets:
Beginning of period 23,677,458 8,234,334 40,918,177 21,273,614 205,943,160 13,443,049 21,132,068 39,279,182 9,860,757 409,255,593
End of period $ 29,153,090 $ 9,760,207 $ 40,962,171 $ 19,519,200 $ 195,843,776 $ 13,698,482 $ 20,079,536 $ 39,219,101 $ 9,207,863 $ 426,342,390
The accompanying notes are an integral part of these financial statements.

SEPARATE ACCOUNT TEN
Talcott Resolution Life and Annuity Insurance Company
Statements of Changes in Net Assets
For the Periods Ended December 31, 2024
Putnam VT Sustainable Future Fund Putnam VT Mortgage Securities Fund Putnam VT Diversified Income Fund Putnam VT Global Asset Allocation Fund Putnam VT Focused International Equity Fund Putnam VT Large Cap Growth Fund Putnam VT Global Health Care Fund Putnam VT High Yield Fund Putnam VT Income Fund Putnam VT International Value Fund
Sub-Account Sub-Account Sub-Account Sub-Account Sub-Account Sub-Account Sub-Account Sub-Account Sub-Account Sub-Account
Operations:
Net investment income (loss) $ (188,799) $ 459,684 $ 1,006,529 $ 337,632 $ 263,569 $ (4,262,051) $ (160,993) $ 1,077,647 $ 1,182,444 $ 215,065
Net realized gain (loss) on security transactions 74,880 (612,127) (1,489,923) 1,045,526 80,682 16,805,480 401,681 (1,382,829) (1,692,802) 477,445
Net realized gain distributions - - - - - 13,341,121 844,244 - - 51,516
Change in unrealized appreciation (depreciation) during the period 1,740,274 449,726 1,385,017 3,224,553 963,204 62,279,310 (942,809) 1,814,473 815,083 6,216
Net increase (decrease) in net assets resulting from operations 1,626,355 297,283 901,623 4,607,711 1,307,455 88,163,860 142,123 1,509,291 304,725 750,242
Unit transactions:
Purchases 87,029 93,222 95,513 103,625 409,274 1,590,796 81,071 61,155 165,829 353,388
Net transfers (111,273) 199,861 1,526,853 (368,212) (556,764) (2,244,078) 298,983 230,466 1,506,379 (185,559)
Surrenders for benefit payments and fees (1,126,295) (600,088) (1,455,522) (3,329,812) (4,115,336) (26,832,947) (1,145,928) (1,978,136) (2,196,061) (1,621,256)
Other transactions (5) 135 (3) 90 123 (8,624) 122 (128) 85 (15)
Death benefits (320,517) (537,249) (1,159,286) (1,299,056) (1,896,405) (9,450,273) (674,120) (1,071,486) (1,322,481) (1,027,877)
Net annuity transactions (34,941) (29,353) (75,002) (242,859) (237,380) 78,655 (129,547) (71,640) (186,580) (22,413)
Net increase (decrease) in net assets resulting from unit transactions (1,506,002) (873,472) (1,067,447) (5,136,224) (6,396,488) (36,866,471) (1,569,419) (2,829,769) (2,032,829) (2,503,732)
Net increase (decrease) in net assets 120,353 (576,189) (165,824) (528,513) (5,089,033) 51,297,389 (1,427,296) (1,320,478) (1,728,104) (1,753,490)
Net assets:
Beginning of period 12,334,200 8,656,008 20,611,190 32,718,735 56,484,529 292,546,869 19,727,884 24,113,271 29,208,955 18,059,518
End of period $ 12,454,553 $ 8,079,819 $ 20,445,366 $ 32,190,222 $ 51,395,496 $ 343,844,258 $ 18,300,588 $ 22,792,793 $ 27,480,851 $ 16,306,028
The accompanying notes are an integral part of these financial statements.
SEPARATE ACCOUNT TEN
Talcott Resolution Life and Annuity Insurance Company
Statements of Changes in Net Assets (concluded)
For the Periods Ended December 31, 2024
Putnam VT International Equity Fund Putnam VT Emerging Markets Equity Fund Putnam VT Core Equity Fund Putnam VT Government Money Market Fund Putnam VT Sustainable Leaders Fund Putnam VT Research Fund Putnam VT Small Cap Value Fund Putnam VT George Putnam Balanced Fund Putnam VT Small Cap Growth Fund Putnam VT Large Cap Value Fund
Sub-Account Sub-Account Sub-Account Sub-Account Sub-Account Sub-Account Sub-Account Sub-Account Sub-Account Sub-Account
Operations:
Net investment income (loss) $ 240,005 $ 16,672 $ (248,093) $ 714,470 $ (2,139,159) $ (112,423) $ (60,780) $ (15,749) $ (143,880) $ (472,650)
Net realized gain (loss) on security transactions 698,126 208,903 1,520,846 - 10,686,214 1,052,991 52,438 1,953,029 263,180 16,011,902
Net realized gain distributions - - 2,276,220 - 1,301,591 82,168 972,948 - - 18,781,131
Change in unrealized appreciation (depreciation) during the period (432,615) 903,859 5,397,599 - 29,541,588 1,842,598 42,013 3,832,715 1,763,073 33,364,218
Net increase (decrease) in net assets resulting from operations 505,516 1,129,434 8,946,572 714,470 39,390,234 2,865,334 1,006,619 5,769,995 1,882,373 67,684,601
Unit transactions:
Purchases 102,296 61,223 280,658 2,027,645 1,419,207 192,784 129,896 749,246 91,151 3,277,019
Net transfers 348,000 (57,268) 252,694 4,948,269 (1,660,528) (271,403) 179,172 228,431 110,093 (1,891,143)
Surrenders for benefit payments and fees (2,124,395) (630,769) (3,810,908) (2,820,999) (15,050,364) (1,008,608) (1,343,259) (3,857,862) (666,718) (33,449,334)
Other transactions (427) - 470 2,078 (15,173) (4,087) (125) 106 (248) (790)
Death benefits (461,694) (313,032) (1,476,822) (3,562,845) (5,840,503) (400,996) (739,586) (3,151,031) (262,092) (16,926,705)
Net annuity transactions (58,275) (15,243) (133,078) 29,298 (382,500) (84,904) (228,056) (73,368) (55,780) (1,483,870)
Net increase (decrease) in net assets resulting from unit transactions (2,194,495) (955,089) (4,886,986) 623,446 (21,529,861) (1,577,214) (2,001,958) (6,104,478) (783,594) (50,474,823)
Net increase (decrease) in net assets (1,688,979) 174,345 4,059,586 1,337,916 17,860,373 1,288,120 (995,339) (334,483) 1,098,779 17,209,778
Net assets:
Beginning of period 25,366,437 8,059,989 36,858,591 19,935,698 188,082,787 12,154,929 22,127,407 39,613,665 8,761,978 392,045,815
End of period $ 23,677,458 $ 8,234,334 $ 40,918,177 $ 21,273,614 $ 205,943,160 $ 13,443,049 $ 21,132,068 $ 39,279,182 $ 9,860,757 $ 409,255,593
The accompanying notes are an integral part of these financial statements.





SEPARATE ACCOUNT TEN
Talcott Resolution Life and Annuity Insurance Company
Notes to Financial Statements
December 31, 2025

1. Organization:

Separate Account Ten (the "Account") is a separate investment account established by Talcott Resolution Life and Annuity Insurance Company (the "Sponsor Company") and is registered with the Securities and Exchange Commission ("SEC") as a unit investment trust under the Investment Company Act of 1940, as amended. Both the Sponsor Company and the Account are subject to supervision and regulation by the Department of Insurance of the State of Connecticut and the SEC. The contract owners of the Sponsor Company direct their deposits into various investment options (the "Sub-Accounts") within the Account.
The Sponsor Company is indirectly owned by Talcott Resolution Life, Inc.

On June 30, 2021, the Account's previous indirect owner, Hopmeadow Holdings GP LLC, completed the sale of the Sponsor Company through the merger of an affiliate of Sixth Street, a global investment firm. Sixth Street obtained 100% control of Talcott Holdings, L.P. and its life and annuity operating subsidiaries including the Account. This transaction does not impact the contracts of the Account or the accounting of the Account.


The Account is comprised of the following Sub-Accounts:

Putnam VT Sustainable Future Fund, Putnam VT Mortgage Securities Fund, Putnam VT Diversified Income Fund, Putnam VT Global Asset Allocation Fund, Putnam VT Focused International Equity Fund, Putnam VT Large Cap Growth Fund, Putnam VT Global Health Care Fund, Putnam VT High Yield Fund, Putnam VT Income Fund, Putnam VT International Value Fund, Putnam VT International Equity Fund, Putnam VT Emerging Markets Equity Fund, Putnam VT Core Equity Fund, Putnam VT Government Money Market Fund, Putnam VT Sustainable Leaders Fund, Putnam VT Research Fund, Putnam VT Small Cap Value Fund, Putnam VT George Putnam Balanced Fund, Putnam VT Small Cap Growth Fund, Putnam VT Large Cap Value Fund.

The Sub-Accounts are invested in mutual funds (the "Funds") of the same name. Each Sub-Account may invest in one or more share classes of a Fund, depending upon the product(s) available in that Sub-Account. A contract owner's unitized performance correlates with the share class associated with the contract owner's product.

If a Fund is subject to a merger by the Fund Manager, the Sub-Account invested in the surviving Fund acquires, at fair value, the net assets of the Sub-Account associated with the merging Fund on the date disclosed. These transfers are reflected in net interfund transfers due to corporate actions on the Statements of Changes in Net Assets.
Under applicable insurance law, the assets and liabilities of the Account are clearly identified and distinguished from the Sponsor Company's other assets and liabilities and are not chargeable with liabilities arising out of any other business the Sponsor Company may conduct.

2. Significant Accounting Policies:

The Account qualifies as an investment company and follows the accounting and reporting guidance as defined in Accounting Standards Codification 946, "Financial Services - Investment Companies." The following is a summary of significant accounting policies of the Account, which are in accordance with accounting principles generally accepted in the United States of America ("U.S. GAAP"):

a) Security Transactions - Security transactions are recorded on the trade date (date the order to buy or sell is executed). Realized gains and losses on the sales of securities are computed using the average cost method. Dividend income is either accrued daily or as of the ex-dividend date based upon the Fund. Net realized gain distributions are accrued as of the ex-dividend date. Net realized gain distributions represent those dividends from the Funds which are characterized as capital gains under tax regulations.

b) Unit Transactions - Unit transactions are executed based on the unit values calculated at the close of the business day.

c) Federal Income Taxes - The operations of the Account form a part of, and are taxed with, the total operations of the Sponsor Company, which is taxed as an insurance company under the Internal Revenue Code ("IRC"). Under the current provisions of the IRC, the Sponsor Company does not expect to incur federal income taxes on the earnings of the Account to the extent the earnings are credited to the contract owners. Based on this, no charge is being made currently to the Account for federal income taxes. The Sponsor Company will review periodically the status of this policy. In the event of changes in the tax law, a charge may be made in future years for any federal income taxes that would be attributable to the contracts.

d) 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 as of the date of the financial statements and the reported amounts of income and expenses during the period. Actual results could differ from those estimates. The most significant estimates contained within the financial statements are the fair value measurements.

e) Mortality Risk - The mortality risk associated with net assets allocated to contracts in the annuity period is determined using certain mortality tables. The mortality risk is fully borne by the Sponsor Company and may result in additional amounts being transferred into the Account by the Sponsor Company to cover greater longevity of contract owners than expected. Conversely, if amounts allocated exceed amounts required, transfers may be made to the Sponsor Company. These amounts are included in net annuity transactions on the accompanying Statements of Changes in Net Assets.

f) Fair Value Measurements - The Sub-Accounts' investments are carried at fair value in the Account's financial statements. The investments in shares of the Funds are valued at the December 31, 2025 closing net asset value as determined by the appropriate Fund Manager. For financial instruments that are carried at fair value, a hierarchy is used to place the instruments into three broad levels (Levels 1, 2 and 3) by prioritizing the inputs in the valuation techniques used to measure fair value.

Level 1: Observable inputs that reflect unadjusted quoted prices for identical assets or liabilities in active markets that the Account has the ability to access at the measurement date. Level 1 investments include mutual funds.

Level 2: Observable inputs, other than unadjusted quoted prices included in Level 1, for the asset or liability or prices for similar assets and liabilities. Level 2 investments include those that are model priced by vendors using observable inputs.

Level 3: Valuations that are derived from techniques in which one or more of the significant inputs are unobservable (including assumptions about risk). Because Level 3 fair values, by their nature, contain unobservable market inputs, considerable judgment is used to determine the Level 3 fair values. Level 3 fair values represent the best estimate of an amount that could be realized in a current market exchange absent actual market exchanges.

In certain cases, the inputs used to measure fair value fall into different levels of the fair value hierarchy. In such cases, an investment's level within the fair value hierarchy is based on the lowest level of input that is significant to the fair value measurement.

As of December 31, 2025, the Sub-Accounts invest in mutual funds which are carried at fair value and represent Level 1 investments under the fair value hierarchy levels. There were no Level 2 or Level 3 investments in the Sub-Accounts. The Account recognizes transfers of securities among the levels at the beginning of the reporting period. There were no transfers among the levels for the periods ended December 31, 2025 and 2024.

g) Accounting for Uncertain Tax Positions - The statute of limitations is closed through the 2021 tax year and the Sponsor Company is not currently under examination for any open years. Management evaluates whether or not there are uncertain tax positions that require financial statement recognition and has determined that no reserves for uncertain tax positions are required at December 31, 2025.

h) The Management Committee of The Sponsor Company evaluates third-party funds and determines the selection of funds to offer within the product offering. All funds are sourced from third party asset managers which employ a governance structure to oversee fund strategy and performance, all of which is an element contemplated in the Separate Account Management Committee's determination of fund offerings. Accordingly, the Management Committee, acts as the Account's chief operating decision maker ("CODM") assessing performance and making decisions about the product offering allocation. The CODM has determined that each Sub-Account acts as an operating segment based on the fact that the CODM monitors the operating results of the fund as a whole and that the fund's long-term strategic asset allocation is pre-determined in accordance with the terms of its prospectus, based on a defined investment strategy which is executed by the fund's portfolio managers as a team. The financial information provided to and reviewed by the CODM is consistent with that presented within the fund's Portfolio of Investments, Statements of Changes in Net Assets and Financial Highlights.


3. Administration of the Account and Related Charges:

Each Sub-Account is charged certain fees, according to contract terms, as follows:

a) Mortality and Expense Risk Charges - The Sponsor Company, as an issuer of variable annuity contracts, assesses mortality and expense risk charges for which it receives a maximum annual fee of 1.50% of the Sub-Account's average daily net assets. These charges are reflected in the accompanying Statements of Operations as a reduction in unit value.

b) Tax Expense Charges - If applicable, the Sponsor Company will make deductions up to a maximum rate of 3.50% of the contract's average daily net assets to meet premium tax requirements. An additional tax charge based on a percentage of the Sub-Account's average daily net assets may be assessed on partial withdrawals or surrenders. These charges are a redemption of units from applicable contract owners' accounts and are reflected in surrenders for benefit payments and fees on the accompanying Statements of Changes in Net Assets.

c) Administrative Charges - The Sponsor Company provides administrative services to the Account and receives a maximum annual fee of 0.20% of the Sub-Account's average daily net assets for these services. These charges are reflected in the accompanying Statements of Operations as a reduction in unit value.

d) Annual Maintenance Fees - An annual maintenance fee up to a maximum of $30 may be charged. These charges are deducted through a redemption of units from applicable contract owners' accounts and are reflected in surrenders for benefit payments and fees in the accompanying Statements of Changes in Net Assets.

e) Rider Charges - The Sponsor Company will make certain deductions (as a percentage of average daily Sub-Account value) for various rider charges:

MAV/EPB Death Benefit Charge maximum of 0.30%
Principal First Charge maximum of 0.75%
Principal First Preferred Charge maximum of 0.20%
Optional Death Benefit Charge maximum of 0.15%
Earnings Protection Benefit Charge maximum of 0.20%

These charges can be assessed as a reduction in unit values or a redemption of units from applicable contract owners' accounts as specified in the product prospectus.

f) Transactions with Related Parties - The Sponsor and its affiliates may receive fees from funds for services provided.


4. Purchases and Sales of Investments:

The cost of purchases and proceeds from sales of investments for the period ended December 31, 2025 were as follows:

Sub-Account Purchases at Cost Proceeds from Sales
Putnam VT Sustainable Future Fund $ 1,873,884 $ 1,777,984
Putnam VT Mortgage Securities Fund $ 1,392,257 $ 1,716,469
Putnam VT Diversified Income Fund $ 2,188,714 $ 3,320,115
Putnam VT Global Asset Allocation Fund $ 5,298,145 $ 5,481,373
Putnam VT Focused International Equity Fund $ 2,361,164 $ 7,474,891
Putnam VT Large Cap Growth Fund $ 32,089,774 $ 44,503,269
Putnam VT Global Health Care Fund $ 1,633,181 $ 2,873,953
Putnam VT High Yield Fund $ 2,016,871 $ 3,145,180
Putnam VT Income Fund $ 2,036,597 $ 4,316,324
Putnam VT International Value Fund $ 856,833 $ 2,771,122
Putnam VT International Equity Fund $ 2,705,562 $ 4,000,530
Putnam VT Emerging Markets Equity Fund $ 566,735 $ 1,583,525
Putnam VT Core Equity Fund $ 4,857,431 $ 7,340,225
Putnam VT Government Money Market Fund $ 9,890,392 $ 11,644,809
Putnam VT Sustainable Leaders Fund $ 25,977,692 $ 32,173,399
Putnam VT Research Fund $ 1,256,749 $ 2,273,755
Putnam VT Small Cap Value Fund $ 3,624,710 $ 3,726,348
Putnam VT George Putnam Balanced Fund $ 3,243,157 $ 6,446,305
Putnam VT Small Cap Growth Fund $ 1,290,627 $ 2,079,449
Putnam VT Large Cap Value Fund $ 36,751,464 $ 62,485,124




5. Changes in Units Outstanding:

The changes in units outstanding for the period ended December 31, 2025 were as follows:
Sub-Account
Units Issued Units Redeemed Net Increase/(Decrease)
Putnam VT Sustainable Future Fund 3,415 27,932 (24,517)
Putnam VT Mortgage Securities Fund 44,533 95,169 (50,636)
Putnam VT Diversified Income Fund 39,528 121,708 (82,180)
Putnam VT Global Asset Allocation Fund 8,864 55,562 (46,698)
Putnam VT Focused International Equity Fund 11,993 116,908 (104,915)
Putnam VT Large Cap Growth Fund 91,662 1,182,676 (1,091,014)
Putnam VT Global Health Care Fund 9,963 59,064 (49,101)
Putnam VT High Yield Fund 11,350 44,601 (33,251)
Putnam VT Income Fund 28,735 114,551 (85,816)
Putnam VT International Value Fund 16,674 78,093 (61,419)
Putnam VT International Equity Fund 29,498 108,503 (79,005)
Putnam VT Emerging Markets Equity Fund 18,864 58,283 (39,419)
Putnam VT Core Equity Fund 27,087 145,823 (118,736)
Putnam VT Government Money Market Fund 5,330,025 6,603,273 (1,273,248)
Putnam VT Sustainable Leaders Fund 28,674 290,918 (262,244)
Putnam VT Research Fund 6,667 33,822 (27,155)
Putnam VT Small Cap Value Fund 26,876 54,569 (27,693)
Putnam VT George Putnam Balanced Fund 41,293 182,745 (141,452)
Putnam VT Small Cap Growth Fund 10,713 31,334 (20,621)
Putnam VT Large Cap Value Fund 53,217 795,656 (742,439)







The changes in units outstanding for the period ended December 31, 2024 were as follows:
Sub-Account
Units Issued Units Redeemed Net Increase/(Decrease)
Putnam VT Sustainable Future Fund 4,402 30,099 (25,697)
Putnam VT Mortgage Securities Fund 29,218 81,059 (51,841)
Putnam VT Diversified Income Fund 61,470 104,716 (43,246)
Putnam VT Global Asset Allocation Fund 3,472 62,818 (59,346)
Putnam VT Focused International Equity Fund 10,511 131,781 (121,270)
Putnam VT Large Cap Growth Fund 107,244 1,350,980 (1,243,736)
Putnam VT Global Health Care Fund 7,852 37,916 (30,064)
Putnam VT High Yield Fund 5,215 47,938 (42,723)
Putnam VT Income Fund 61,646 115,647 (54,001)
Putnam VT International Value Fund 12,363 94,538 (82,175)
Putnam VT International Equity Fund 24,542 96,018 (71,476)
Putnam VT Emerging Markets Equity Fund 8,187 48,042 (39,855)
Putnam VT Core Equity Fund 32,710 146,673 (113,963)
Putnam VT Government Money Market Fund 5,656,297 5,333,839 322,458
Putnam VT Sustainable Leaders Fund 9,571 208,160 (198,589)
Putnam VT Research Fund 6,371 33,329 (26,958)
Putnam VT Small Cap Value Fund 38,415 70,116 (31,701)
Putnam VT George Putnam Balanced Fund 28,296 227,987 (199,691)
Putnam VT Small Cap Growth Fund 7,679 20,462 (12,783)
Putnam VT Large Cap Value Fund 44,546 809,225 (764,679)




6. Financial Highlights:

The following is a summary of units, unit fair values, net assets, expense ratios, investment income ratios, and total return ratios as of or for each of the periods presented for the aggregate of all share classes within each Sub-Account that had outstanding units during the period ended December 31, 2025. The ranges presented are calculated using the results of only the contracts with the highest and lowest expense ratios that had assets during the period reported. A specific unit value or ratio may be outside of the range presented in this table due to the initial assigned unit values, combined with varying performance and/or length of time since inception of the presented expense ratios that had assets during the period reported. Investment income and total return ratios are calculated for the period the related share class within the Sub-Account is active, while the expense ratio is annualized. In the case of fund mergers, the expense, investment income, and total return ratios are calculated using only the results of the surviving fund and exclude the results of the fund merged into the surviving fund. For the fund merged into the surviving fund the results are through the date of the fund merger. Corporate actions are identified for only the current year, prior years' corporate actions are disclosed in the respective year's report.

Units # Unit
Fair Value
Lowest to Highest # 		Net Assets Expense
Ratio Lowest to Highest* 		Investment
Income
Ratio Lowest to Highest** 		Total Return Ratio
Lowest to Highest***
Putnam VT Sustainable Future Fund
2025 184,484 $46.118898 to $68.520430 $11,144,108 0.95% to 2.45% 0.09% to 0.33% 0.17% to 1.90%
2024 209,001 $46.040470 to $67.245985 $12,454,553 0.95% to 2.45% -% to -% 12.11% to 14.14%
2023 234,698 $41.068608 to $58.914481 $12,334,200 0.95% to 2.45% -% to -% 25.41% to 27.61%
2022 264,681 $34.568441 to $46.166589 $10,959,401 0.95% to 2.70% -% to -% (35.79)% to (34.48)%
2021 282,049 $53.835807 to $70.459127 $17,934,400 0.95% to 2.70% -% to -% 3.25% to 5.32%
Putnam VT Mortgage Securities Fund
2025 419,466 $13.036678 to $21.497561 $7,771,318 0.95% to 2.45% -% to 8.23% 6.45% to 8.19%
2024 470,102 $12.247104 to $19.871063 $8,079,819 0.95% to 2.45% 6.57% to 6.68% 2.22% to 4.15%
2023 521,943 $11.980687 to $19.079435 $8,656,008 0.95% to 2.45% 15.40% to 15.73% 2.73% to 4.44%
2022 586,404 $10.081871 to $18.268468 $9,386,239 0.95% to 2.70% 9.00% to 9.17% (12.47)% to (10.68)%
2021 703,133 $11.518286 to $20.451970 $12,621,843 0.95% to 2.70% -% to -% (6.33)% to (4.34)%
Putnam VT Diversified Income Fund
2025 722,251 $16.679125 to $29.450633 $19,722,071 0.95% to 2.45% 6.00% to 6.44% 5.96% to 7.56%
2024 804,431 $15.741479 to $27.381290 $20,445,366 0.95% to 2.45% 5.84% to 5.89% 3.20% to 4.76%
2023 847,677 $15.253063 to $26.136787 $20,611,190 0.95% to 2.45% 5.90% to 5.97% 2.28% to 3.83%
2022 960,132 $15.992444 to $25.173687 $22,573,577 0.95% to 2.70% 6.50% to 6.64% (4.95)% to (3.27)%
2021 1,042,230 $16.824864 to $26.024490 $25,311,651 0.95% to 2.70% 0.64% to 0.66% (9.43)% to (7.83)%
Putnam VT Global Asset Allocation Fund
2025 318,067 $22.138970 to $39.729865 $31,735,913 0.95% to 2.45% 2.19% to 2.41% 11.61% to 13.60%
2024 364,765 $19.835316 to $34.971964 $32,190,222 0.95% to 2.45% 2.13% to 2.35% 13.54% to 15.53%
2023 424,111 $17.469623 to $30.270542 $32,718,735 0.95% to 2.45% 1.56% to 1.79% 14.64% to 16.67%
2022 477,776 $15.238243 to $25.945595 $31,619,241 0.95% to 2.45% 1.31% to 1.62% (18.06)% to (16.62)%
2021 519,781 $18.597273 to $88.244201 $41,570,574 0.95% to 2.45% -% to 0.71% 11.19% to 12.87%
Putnam VT Focused International Equity Fund
2025 896,728 $19.217248 to $28.404397 $62,049,731 0.95% to 2.45% -% to 3.32% 33.14% to 35.46%
2024 1,001,643 $14.434061 to $54.673709 $51,395,496 0.95% to 2.45% -% to 1.62% 0.80% to 2.32%
2023 1,122,913 $14.319867 to $53.433710 $56,484,529 0.95% to 2.45% 0.67% to 0.68% 16.36% to 18.12%
2022 1,277,905 $12.306236 to $45.236865 $54,520,496 0.95% to 2.45% -% to 1.73% (20.18)% to (18.97)%
2021 1,418,714 $29.505384 to $55.826534 $75,068,643 0.95% to 2.40% 0.74% to 0.75% 9.91% to 11.51%
Putnam VT Large Cap Growth Fund
2025 9,145,883 $42.850231 to $97.230509 $347,344,995 0.95% to 2.70% -% to -% 11.29% to 13.50%
2024 10,236,897 $37.754482 to $87.365465 $343,844,258 0.95% to 2.70% -% to 0.09% 29.86% to 32.44%
2023 11,480,633 $28.506101 to $67.279203 $292,546,869 0.95% to 2.70% -% to -% 40.63% to 43.52%
2022 12,709,107 $19.862439 to $47.840620 $226,631,449 0.95% to 2.70% -% to -% (32.36)% to (31.02)%
2021 13,855,770 $28.795724 to $70.725819 $359,939,029 0.95% to 2.70% -% to -% 19.39% to 21.84%
Putnam VT Global Health Care Fund
2025 332,706 $29.257131 to $66.061088 $18,383,480 0.95% to 2.50% -% to -% 12.21% to 14.25%
2024 381,807 $26.073160 to $57.823835 $18,300,588 0.95% to 2.50% 0.46% to 0.65% (1.08)% to 0.74%
2023 411,871 $26.356945 to $57.401053 $19,727,884 0.95% to 2.50% 0.29% to 0.51% 6.44% to 8.35%
2022 453,672 $24.762044 to $52.975333 $20,182,526 0.95% to 2.50% 0.43% to 0.63% (7.03)% to (5.34)%
2021 499,402 $26.633689 to $55.964933 $23,553,323 0.95% to 2.50% 1.09% to 1.25% 16.45% to 18.64%
Putnam VT High Yield Fund
2025 303,337 $23.626497 to $79.430275 $22,110,064 0.95% to 2.45% 6.17% to 6.25% 6.04% to 7.65%
2024 336,588 $22.279989 to $73.788568 $22,792,793 0.95% to 2.45% 5.83% to 5.85% 5.25% to 6.84%
2023 379,311 $21.168483 to $69.063883 $24,113,271 0.95% to 2.45% 5.31% to 5.40% 9.42% to 11.07%
2022 423,593 $19.808633 to $62.177730 $24,298,813 0.95% to 2.70% 5.11% to 5.14% (13.96)% to (12.44)%
2021 477,129 $23.022257 to $71.010685 $31,141,242 0.95% to 2.70% 4.66% to 4.74% 2.18% to 3.98%
Putnam VT Income Fund
2025 638,044 $14.619949 to $44.609478 $25,754,392 0.95% to 2.45% 3.59% to 4.74% 4.66% to 6.24%
2024 723,860 $15.373143 to $41.990188 $27,480,851 0.95% to 2.70% 5.39% to 5.46% (0.40)% to 1.35%
2023 777,861 $15.435613 to $41.429505 $29,208,955 0.95% to 2.70% 5.53% to 5.69% 1.91% to 3.71%
2022 848,255 $15.146898 to $39.949355 $30,855,546 0.95% to 2.70% 5.54% to 5.82% (16.11)% to (14.63)%
2021 945,400 $18.055422 to $46.793620 $40,269,127 0.95% to 2.70% 1.30% to 1.36% (7.13)% to (5.49)%
Putnam VT International Value Fund
2025 493,475 $12.661936 to $42.480146 $19,375,115 0.95% to 2.45% -% to 1.21% 31.42% to 33.40%
2024 554,894 $18.614458 to $31.843088 $16,306,028 0.95% to 2.70% 2.39% to 2.51% 2.41% to 4.22%
2023 637,069 $18.176184 to $30.554034 $18,059,518 0.95% to 2.70% 1.47% to 1.50% 15.52% to 17.56%
2022 689,308 $15.734134 to $25.990441 $16,635,752 0.95% to 2.70% 2.01% to 2.01% (9.29)% to (7.69)%
2021 756,201 $17.345608 to $28.155155 $19,859,367 0.95% to 2.70% 1.99% to 2.02% 11.88% to 13.85%
Putnam VT International Equity Fund
2025 701,759 $13.426743 to $45.409392 $29,153,090 0.95% to 2.45% 0.01% to 0.01% 34.35% to 36.38%
2024 780,764 $18.261861 to $33.295597 $23,677,458 0.95% to 2.70% 2.20% to 2.21% 0.23% to 2.00%
2023 852,240 $18.219985 to $32.643000 $25,366,437 0.95% to 2.70% 0.04% to 0.04% 15.35% to 17.39%
2022 928,087 $15.795173 to $27.808115 $23,437,467 0.95% to 2.70% 1.50% to 1.55% (17.04)% to (15.57)%
2021 987,682 $19.039511 to $32.937952 $29,656,993 0.95% to 2.70% 1.01% to 1.14% 5.92% to 7.79%
Putnam VT Emerging Markets Equity Fund
2025 305,894 $15.366807 to $33.819797 $9,760,207 0.95% to 2.50% 0.62% to 0.71% 30.84% to 32.89%
2024 345,313 $11.744349 to $25.449993 $8,234,334 0.95% to 2.50% 1.34% to 1.41% 12.72% to 14.48%
2023 385,168 $10.419442 to $22.231805 $8,059,989 0.95% to 2.50% 0.44% to 0.47% 8.84% to 10.53%
2022 419,731 $9.573550 to $20.112945 $7,953,216 0.95% to 2.50% -% to -% (29.27)% to (28.16)%
2021 451,207 $13.534648 to $27.996789 $11,899,503 0.95% to 2.50% 0.42% to 0.47% (6.56)% to (5.10)%
Putnam VT Core Equity Fund
2025 761,664 $57.834319 to $69.449855 $40,962,171 0.95% to 2.70% 0.41% to 0.41% 13.69% to 15.70%
2024 880,400 $49.985803 to $61.084449 $40,918,177 0.95% to 2.70% 0.61% to 0.75% 23.58% to 25.76%
2023 994,363 $39.747186 to $49.429088 $36,858,591 0.95% to 2.70% 0.50% to 0.51% 24.68% to 26.87%
2022 1,061,295 $31.328051 to $39.646080 $31,074,880 0.95% to 2.70% 0.82% to 0.99% (18.01)% to (16.57)%
2021 1,216,555 $37.548193 to $48.357418 $41,915,444 0.95% to 2.70% 0.53% to 0.68% 27.52% to 29.77%
Putnam VT Government Money Market Fund
2025 11,243,190 $1.259587 to $7.884766 $19,519,200 0.95% to 2.40% 1.37% to 3.86% 1.23% to 2.96%
2024 12,516,438 $1.223341 to $7.789264 $21,273,614 0.95% to 2.40% 4.60% to 4.89% 2.18% to 3.94%
2023 12,193,980 $1.176999 to $7.622710 $19,935,698 0.95% to 2.40% 4.40% to 4.59% 1.96% to 3.71%
2022 12,293,920 $1.134869 to $7.475848 $19,490,450 0.95% to 2.40% 0.03% to 1.28% (1.27)% to 0.33%
2021 12,958,217 $1.131085 to $7.572336 $20,356,555 0.95% to 2.40% 0.01% to 0.01% (2.36)% to (0.93)%
Putnam VT Sustainable Leaders Fund
2025 1,574,492 $69.731592 to $137.379239 $195,843,776 0.95% to 2.70% 0.65% to 0.66% 7.74% to 9.65%
2024 1,836,736 $64.720075 to $125.294027 $205,943,160 0.95% to 2.70% 0.20% to 0.24% 19.75% to 21.86%
2023 2,035,325 $54.046652 to $102.817457 $188,082,787 0.95% to 2.70% 0.52% to 0.75% 22.75% to 24.91%
2022 2,246,878 $44.029792 to $82.310017 $167,023,269 0.95% to 2.70% 0.51% to 0.54% (24.97)% to (23.64)%
2021 2,429,198 $58.297227 to $107.791887 $237,122,961 0.95% to 2.75% -% to 0.13% 20.18% to 22.37%
Putnam VT Research Fund
2025 182,983 $36.947564 to $65.512326 $13,698,482 0.95% to 2.45% -% to 0.75% 15.03% to 17.05%
2024 210,138 $55.970808 to $61.813909 $13,443,049 0.95% to 2.70% 0.43% to 0.56% 22.92% to 25.41%
2023 237,096 $50.289198 to $55.130239 $12,154,929 0.95% to 2.70% 0.82% to 0.84% 25.43% to 27.64%
2022 247,805 $40.093528 to $43.191528 $9,959,882 0.95% to 2.70% 0.56% to 0.57% (19.49)% to (18.07)%
2021 275,895 $49.798147 to $52.714448 $13,585,981 0.95% to 2.70% 0.10% to 0.10% 20.83% to 22.96%
Putnam VT Small Cap Value Fund
2025 291,190 $41.558092 to $83.712936 $20,079,536 0.95% to 2.70% 0.68% to 0.92% 2.47% to 4.46%
2024 318,883 $40.557950 to $80.138500 $21,132,068 0.95% to 2.70% 1.14% to 1.15% 3.37% to 5.47%
2023 350,584 $39.236407 to $75.983091 $22,127,407 0.95% to 2.70% 0.15% to 0.42% 20.46% to 22.96%
2022 386,813 $32.572138 to $61.793573 $19,962,768 0.95% to 2.70% 0.14% to 0.43% (15.30)% to (13.62)%
2021 421,294 $38.455959 to $71.539986 $25,324,155 0.95% to 2.70% 0.81% to 0.87% 36.18% to 38.90%
Putnam VT George Putnam Balanced Fund
2025 1,089,255 $35.753802 to $41.185099 $39,219,101 0.95% to 2.70% 1.41% to 1.76% 10.92% to 13.23%
2024 1,230,707 $32.234668 to $36.372722 $39,279,182 0.95% to 2.70% 1.32% to 1.41% 13.62% to 15.84%
2023 1,430,398 $28.371158 to $31.399482 $39,613,665 0.95% to 2.70% 1.25% to 1.41% 16.71% to 19.13%
2022 1,553,628 $24.309050 to $26.357709 $36,270,354 0.95% to 2.70% 0.67% to 1.15% (18.23)% to (16.61)%
2021 1,698,239 $29.730140 to $31.608714 $47,746,169 0.95% to 2.70% 0.83% to 1.17% 10.92% to 13.20%
Putnam VT Small Cap Growth Fund
2025 133,796 $53.521924 to $77.662374 $9,207,863 0.95% to 2.70% 0.37% to 0.56% 5.91% to 8.04%
2024 154,417 $50.537156 to $71.883616 $9,860,757 0.95% to 2.70% -% to -% 20.05% to 22.50%
2023 167,200 $42.096594 to $58.681276 $8,761,978 0.95% to 2.70% -% to -% 19.87% to 22.29%
2022 179,611 $35.119802 to $47.984985 $7,733,049 0.95% to 2.70% -% to -% (30.21)% to (28.79)%
2021 196,619 $48.590631 to $67.389199 $11,966,022 0.95% to 2.45% -% to -% 11.12% to 13.05%
Putnam VT Large Cap Value Fund
2025 5,220,173 $57.976906 to $90.893979 $426,342,390 0.95% to 2.70% 1.41% to 1.73% 17.14% to 19.52%
2024 5,962,612 $49.491975 to $76.046868 $409,255,593 0.95% to 2.70% 1.28% to 1.53% 15.97% to 18.33%
2023 6,727,291 $42.676105 to $64.266058 $392,045,815 0.95% to 2.70% 2.01% to 2.32% 12.59% to 14.83%
2022 7,594,106 $37.904987 to $55.967951 $387,198,893 0.95% to 2.70% 1.51% to 1.68% (5.71)% to (3.79)%
2021 8,369,769 $40.201353 to $58.170518 $445,633,412 0.95% to 2.70% 1.23% to 1.50% 23.91% to 26.41%



*Represents the annualized contract expenses of the Sub-Account for the period indicated and includes only those expenses that are charged through a reduction in the unit values. Excluded are expenses of the Funds and charges made directly to contract owner accounts through the redemption of units. Where the expense ratio is the same for each unit value, it is presented in both the lowest and highest columns.

**These amounts represent the dividends, excluding distributions of capital gains, received by the Sub-Account from the Fund, net of management fees assessed by the Fund's manager, divided by the average net assets. These ratios exclude those expenses, such as mortality and expense risk charges, that result in direct reductions in the unit values. The recognition of investment income by the Sub-Account is affected by the timing of the declaration of dividends by the Fund in which the Sub-Account invests. Where the investment income ratio is the same for each unit value, it is presented in both the lowest and highest columns.

***Represents the total return for the period indicated and reflects a deduction only for expenses assessed through the daily unit value calculation. The total return does not include any expenses assessed through the redemption of units; inclusion of these expenses in the calculation would result in a reduction in the total return presented. Investment options with a date notation in the notes on the Statements of Operations indicate the effective date of that investment option in the Account. The total return is calculated for the period indicated.
# Rounded units/unit fair values. Where only one unit value exists, it is presented in both the lowest and highest columns.






7. Subsequent Events:


Management has evaluated events subsequent to December 31, 2025 and through April 17, 2026, the date the financial statements were available to be issued, noting there are no other subsequent events requiring adjustment or disclosure in the financial statements.














Talcott Resolution Life and Annuity
Insurance Company
Independent Auditor's Report
Financial Statements - Statutory-Basis
As of December 31, 2025, 2024 and 2023, and for the
Years Ended December 31, 2025, 2024 and 2023
Supplemental Schedules as of and for the
Year Ended December 31, 2025











































TALCOTT RESOLUTION LIFE AND ANNUITY INSURANCE COMPANY
CONTENTS
Page:
Independent Auditor's Report 1 - 3
Financial Statements - Statutory-Basis:
Admitted Assets, Liabilities and Capital and Surplus 4
Statements of Operations 5
Statements of Changes in Capital and Surplus 6
Statements of Cash Flows 7
Notes to Financial Statements 8 - 54
Supplemental Schedules
Schedule I - Selected Financial Data 55 - 57
Schedule II - Summary Investment Schedule 58
Schedule III - Investment Risks Interrogatories 59 - 64
Schedule IV - Supplemental Schedule of Reinsurance Contracts with Risk-Limiting Features 65



























TALCOTT RESOLUTION LIFE AND ANNUITY INSURANCE COMPANY
ADMITTED ASSETS, LIABILITIES AND CAPITAL AND SURPLUS
(STATUTORY-BASIS)
Admitted assets
As of December 31,
2025 2024
Bonds
$ 2,992,962,146 $ 3,485,972,537
Common and preferred stocks
11,737,059 40,445,531
Mortgage loans on real estate
577,794,520 687,494,035
Contract loans
86,985,968 86,947,134
Cash, cash equivalents and short-term investments
195,554,580 636,655,573
Derivatives
48,296,942 101,755,280
Other invested assets
644,114,568 578,050,264
Total cash and invested assets
4,557,445,783 5,617,320,354
Investment income due and accrued
39,504,375 53,206,887
Amounts recoverable for reinsurance
76,185,846 65,644,758
Federal income tax recoverable
625,435 1,209,143
Net deferred tax asset
63,541,833 55,763,712
Other assets
36,265,159 36,466,689
Separate Account assets
24,106,820,931 23,803,924,174
Total admitted assets
$ 28,880,389,362 $ 29,633,535,717
Liabilities
Aggregate reserves for future benefits
$ 2,963,051,806 $ 4,234,013,014
Liability for deposit-type contracts
125,690,078 143,312,740
Policy and contract claim liabilities
20,543,556 18,973,114
Asset valuation reserve
122,433,569 126,399,841
Interest maintenance reserve
96,162,702 33,676,604
Payables to parent, subsidiaries and affiliates
33,283,192 40,249,340
Accrued expense allowances and amounts due from Separate Accounts
(10,329,925) (26,910,443)
Derivatives 4,820,659 18,431,325
Collateral on derivatives
3,039,950 6,457,000
Payable for repurchase agreements 120,684,019 171,899,921
Payable for securities 58,049,967 119,134,538
Other liabilities 499,643,726 317,342,335
Separate Account liabilities 24,106,820,931 23,803,924,174
Total liabilities $ 28,143,894,230 $ 29,006,903,503
Capital and surplus
Common stock - par value $1,250 per share, 3,000 shares authorized, 2,000 shares issued and outstanding
2,500,000 2,500,000
Aggregate write-ins for other than special surplus funds
- 119,373,209
Gross paid-in and contributed surplus
98,742,904 85,431,561
Unassigned surplus
635,252,228 419,327,444
Total capital and surplus
736,495,132 626,632,214
Total liabilities and capital and surplus
$ 28,880,389,362 $ 29,633,535,717




See notes to financial statements.

4

TALCOTT RESOLUTION LIFE AND ANNUITY INSURANCE COMPANY
STATEMENTS OF OPERATIONS
(STATUTORY-BASIS)
Revenues
For the years ended December 31,
2025 2024 2023
Premiums and annuity considerations
$ (8,856,324,429) $ 72,476,082 $ 74,015,374
Net investment income
221,343,136 274,137,829 274,931,065
Commissions and expense allowances on reinsurance ceded
4,936,832 105,876,954 110,570,839
Reserve adjustments on reinsurance ceded
5,369,474,934 (1,932,715,884) (1,389,948,223)
Fee income
333,510,064 512,113,975 501,612,185
Other revenues
1,419,409 621,173 2,424,209
Total revenues (2,925,640,054) (967,489,871) (426,394,551)
Benefits and expenses
Death and annuity benefits
167,607,419 191,762,643 209,818,126
Disability and other benefits
915,716 1,418,538 1,409,180
Surrenders and other fund withdrawals
635,847,063 1,365,362,021 1,206,573,608
Commissions and expense allowances
107,872,426 112,007,776 110,130,356
Decrease in aggregate reserves for life and accident and health policies
(1,270,961,207) (204,622,173) (226,502,136)
General insurance expenses
108,490,771 99,010,457 86,779,049
Net transfers from Separate Accounts
(2,574,874,525) (2,561,176,569) (2,144,561,129)
Modified coinsurance adjustment on reinsurance assumed
(150,471,186) (146,181,690) (129,276,050)
IMR adjustment on reinsurance ceded 74,076,487 1,820,444 957,014
Other expenses (2,584,140) 11,530,839 10,373,178
Total benefits and expenses (2,904,081,176) (1,129,067,714) (874,298,804)
Net (loss) gain from operations before federal income tax benefit (21,558,878) 161,577,843 447,904,253
Federal income tax expense (benefit) 41,633,472 (8,545,006) 19,898,443
Net (loss) gain from operations (63,192,350) 170,122,849 428,005,810
Net realized capital losses, after tax
(75,630,359) (153,659,423) (411,793,622)
Net (loss) income
$(138,822,709) $16,463,426 $16,212,188


















See notes to financial statements.


5

TALCOTT RESOLUTION LIFE AND ANNUITY INSURANCE COMPANY
STATEMENTS OF CHANGES IN CAPITAL AND SURPLUS
(STATUTORY-BASIS)
Common stock - Par value $1,250 per share, 3,000 shares authorized, 2,000 shares issued and outstanding
For the years ended December 31,
2025 2024 2023
Balance, beginning and end of year
$ 2,500,000 $ 2,500,000 $ 2,500,000
Gross paid-in and contributed surplus
Balance, beginning of year
85,431,561 85,431,561 85,431,561
Capital (return) paid-in
13,311,343 - -
Balance, beginning and end of year
98,742,904 85,431,561 85,431,561
Aggregate write-ins for other than special surplus funds
Balance, beginning of year
119,373,209 135,822,092 152,270,975
Amortization, decreases of gain on inforce reinsurance (119,373,209) (16,448,883) (16,448,883)
Balance, end of year
- 119,373,209 135,822,092
Unassigned funds
Balance, beginning of year
419,327,444 663,185,906 708,426,635
Net income (loss) (138,822,709) 16,463,426 16,212,188
Change in net unrealized capital gains (losses) on investments, net of tax
60,764,196 641,856 28,927,296
Change in net unrealized foreign exchange capital gains (losses)
89,315 4,999 (966,839)
Change in net deferred income tax
12,789,829 10,469,927 32,720,836
Change in reserve on account of change in valuation basis decrease - - -
Change in asset valuation reserve 3,966,272 12,444,117 11,561,910
Cumulative effect of changes in accounting principles 119,373,209 - -
Change in nonadmitted assets
(27,599,199) (8,882,787) (38,896,120)
Surplus adjustment: Change in surplus as a result of reinsurance 193,909,872 - -
Dividends to stockholder (8,546,001) (275,000,000) (94,800,000)
Balance, end of year
635,252,228 419,327,444 663,185,906
Capital and surplus
Balance, end of year
$ 736,495,132 $ 626,632,214 $ 886,939,559
















See notes to financial statements.
6

TALCOTT RESOLUTION LIFE AND ANNUITY INSURANCE COMPANY
STATEMENTS OF CASH FLOWS
(STATUTORY-BASIS)
Operating activities For the years ended December 31,
2025 2024 2023
Premiums and annuity considerations $ 49,478,977 $ 86,854,768 $ 44,441,167
Net investment income 247,959,103 271,623,693 284,481,875
Reserve adjustments on reinsurance (2,479,231,425) (1,938,188,538) (1,396,429,938)
Miscellaneous income 571,810,416 601,771,957 596,191,264
Total income (1,609,982,929) (977,938,120) (471,315,632)
Benefits paid 2,011,738,580 1,522,585,152 1,436,126,796
Federal income tax recovered (paid) 45,140,436 (10,050,179) 27,895,132
Net transfers from Separate Accounts (2,571,073,308) (2,566,990,382) (2,141,052,418)
Other expenses 50,340,150 56,022,947 151,593,092
Total benefits and expenses (463,854,142) (998,432,462) (525,437,398)
Net cash (used for) provided by operating activities (1,146,128,787) 20,494,342 54,121,766
Investing activities
Proceeds from investments sold, matured or repaid
Bonds 778,067,288 785,953,075 371,905,191
Common and preferred stocks 23,268,192 2,501,416 1,361,746
Mortgage loans 136,436,675 152,207,133 269,464,752
Derivatives and other 72,989,214 156,127,719 166,062,944
Total investment proceeds 1,010,761,369 1,096,789,343 808,794,633
Cost of investments acquired
Bonds 344,827,420 412,943,739 118,736,760
Common and preferred stocks 13,862,572 1,675,845 1,368,839
Mortgage loans 22,985,976 66,632,663 70,086,833
Derivatives and other 157,635,501 296,303,867 417,047,643
Total investments acquired 539,311,469 777,556,114 607,240,075
Net decrease in contract loans 38,834 194,624 (1,312,192)
Net cash provided by investing activities 471,411,066 319,038,605 202,866,750
Financing and miscellaneous activities
Return of paid-in surplus 13,311,343 - -
Change in borrowed funds 300,000,000
Dividends to stockholder - (275,000,000) (94,800,000)
Other cash (used) provided (79,694,615) 74,861,539 26,698,352
Net cash provided by (used for) financing and miscellaneous activities 233,616,728 (200,138,461) (68,101,648)
Net (decrease) increase in cash, cash equivalents and short-term investments (441,100,993) 139,394,486 188,886,868
Cash, cash equivalents and short-term investments, beginning of year
636,655,573 497,261,087 308,374,219
Cash, cash equivalents and short-term investments, end of year
$ 195,554,580 $ 636,655,573 $ 497,261,087
Note: Supplemental disclosures of cash flow information for non-cash transactions:
Non-cash proceeds from invested asset exchanges - bonds and other invested assets (62,395,417) (21,528,312) (47,551,763)
Non-cash acquisitions from invested asset exchanges - bonds and other invested assets (62,395,417) (21,528,312) (47,551,763)
Non-cash ceded premiums for reinsurance (3,163,407) (1,820,444) (957,014)
Non-cash transfer of funds withheld for unauthorized reinsurance (2,066,458) 7,293,098 7,438,729
Non-cash transfer of IMR liability for reinsurance 5,229,864 1,820,444 957,014
Non-cash IMR reserve transferred on reinsurance - (1,820,444) (957,014)
Non-cash payable on reinsurance - (5,472,654) (6,481,715)
Non-cash proceeds from sale of common stock-affiliates (8,546,001)
Non-cash dividend from distribution of affiliates 8,546,001
Non-cash premiums from recaptured reinsurance (10,576,146,399)
Non-cash reserve adjustments from recaptured reinsurance 10,480,570,915
Non-cash funds withheld for unauthorized reinsurance from recaptured reinsurance 95,575,484
Non-cash commission and expense allowances on reinsurance ceded from recaptured reinsurance 39,651,169
Non-cash increase in aggregate reserves from recaptured reinsurance (39,651,169)
Non-cash transfer of IMR liability from recaptured reinsurance 95,496,571
Non-cash IMR reserve transferred from recaptured reinsurance (95,496,571)
Non-cash premiums for ceded reinsurance 19,497,654,997
Non-cash reserve adjustments on reinsurance ceded for ceded reinsurance (18,349,659,009)
Non-cash aggregate reserve change for ceded reinsurance (1,187,647,157)
Non-cash increase in aggregate reserves for ceded reinsurance 39,651,169
Non-cash transfer of IMR liability for ceded reinsurance (21,420,084)
Non-cash IMR reserve transferred for ceded reinsurance 21,420,084
Non-cash transfers to Separate Accounts 20,381,735
Non-cash reserve adjustments for ceded reinsurance (20,381,735)
See notes to financial statements.
7
TALCOTT RESOLUTION LIFE AND ANNUITY INSURANCE COMPANY
NOTES TO STATUTORY-BASIS FINANCIAL STATEMENTS
YEARS ENDED DECEMBER 31, 2025, 2024 AND 2023


1. Organization and Description of Business

Talcott Resolution Life and Annuity Insurance Company ("TLA" or the "Company") is a wholly-owned subsidiary of TR Re, Ltd. ("TR Re") which is a Class E insurer domiciled in Bermuda with an ultimate parent of Talcott Financial Group, Ltd. ("TFG"). Refer to footnote 7, Related Party Transactions, for information about the Companies ownership changes in 2025.

The Company maintains a complete line of fixed and variable annuities, universal and traditional individual life insurance and benefit products such as disability insurance. In Q4 2025, the Company began writing new retail business, including multi-year guaranteed annuities and fixed indexed annuities, with the volume of new business issued in 2025 being immaterial to the financial statements.

2. Summary of Significant Accounting Policies

Basis of Presentation

The accompanying statutory-basis financial statements of Talcott Resolution Life and Annuity Insurance Company (the "Company" or "TLA") have been prepared in conformity with statutory accounting practices prescribed or permitted by the State of Connecticut Insurance Department ("the Department"). The Department recognizes only statutory accounting practices prescribed or permitted by the State of Connecticut for determining and reporting the financial condition and results of operations of an insurance company and for determining solvency under the State of Connecticut Insurance Law. The National Association of Insurance Commissioners' Accounting Practices and Procedures Manual ("NAIC SAP") has been adopted as a component of prescribed practices by the State of Connecticut.

A difference prescribed by Connecticut state law allows the Company to receive a reinsurance reserve credit for reinsurance treaties that provide for a limited right of unilateral cancellation by the reinsurer. Even if the Company did not obtain reinsurance reserve credit for this reinsurance treaty, the Company's risk-based capital would not have triggered a regulatory event.

A reconciliation of the Company's net (loss) income and capital and surplus between NAIC SAP and practices prescribed by the Department is shown below for the years ended December 31:
SSAP # F/S Page 2025 2024 2023
Net (loss) income
1. TLA state basis $ (138,822,709) $ 16,463,426 $ 16,212,188
2. State prescribed practices that change NAIC SAP:
Less: Reinsurance reserve credit (as described above) 61R 4 (850,632) 2,570,609 (15,876,410)
(850,632) 2,570,609 (15,876,410)
3. State permitted practices that change NAIC SAP - - -
4. Net SAP (1-2-3=4) 61R 4 $ (137,972,077) $ 13,892,817 $ 32,088,598
Surplus
5. TLA state basis $ 736,495,132 $ 626,632,214 $ 886,939,559
6. State prescribed practices that change NAIC SAP:
Less: Reinsurance reserve credit (as described above) 61R 5 20,106,744 20,957,376 18,386,767
20,106,744 20,957,376 18,386,767
7. State permitted practices that change NAIC SAP - - -
8. NAIC SAP (5-6-7=8) 61R 5 $ 716,388,388 $ 605,674,838 $ 868,552,792
The Company does not follow any other prescribed or permitted statutory accounting practices that have a material effect on statutory surplus, statutory net income or risk-based capital of the Company.

The preparation of financial statements in conformity with the National Association of Insurance Commissioners ("NAIC") Annual Statement Instructions and NAIC SAP requires management to make 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 during the reported periods. Actual results could differ from those estimates. The most significant estimates include those used in determining the liability for aggregate reserves for life, annuity and health policies, evaluation of other-than-temporary impairments ("OTTI"), valuation of derivatives, and contingencies relating to
8
TALCOTT RESOLUTION LIFE AND ANNUITY INSURANCE COMPANY
NOTES TO STATUTORY-BASIS FINANCIAL STATEMENTS
YEARS ENDED DECEMBER 31, 2025, 2024 AND 2023


corporate litigation and regulatory matters. Certain of these estimates are particularly sensitive to market conditions, and deterioration and/or volatility in the worldwide debt or equity markets could have a material impact on the statutory-basis financial statements. Although some variability is inherent in these estimates, management believes the amounts provided are adequate.

Certain reclassifications were made to prior year balances for the presentation of reinsurance balances in Footnote 6 tables to be consistent with current year presentation.

Accounting practices and procedures as prescribed or permitted by the Department are different in certain material respects from accounting principles generally accepted in the United States of America ("GAAP"). The more significant differences are:

1.for statutory purposes, policy acquisition costs (commissions, underwriting and selling expenses, etc.) and sales inducements are charged to expense when incurred rather than capitalized and amortized for GAAP purposes;

2.recognition of premium revenues and policy charges, which for statutory purposes are generally recorded as collected or when due during the premium paying period of the contract and which for GAAP purposes, for universal life policies and investment products, generally only consist of charges assessed to policy account balances for cost of insurance, policy administration and surrenders. For GAAP, when policy charges received relate to coverage or services to be provided in the future, the charges are recognized as revenue on a pro-rata basis over the expected life and gross profit stream of the policy. Also, for GAAP purposes, premiums for traditional life insurance policies are recognized as revenues when they are due from policyholders;

3.development of liabilities for future benefits, which for statutory purposes predominantly use interest rate and mortality assumptions prescribed by the National Association of Insurance Commissioners ("NAIC"), which may vary considerably from interest and mortality assumptions used under GAAP. Additionally for GAAP, reserves for guaranteed minimum death benefits ("GMDB") are based on models that involve a range of scenarios and assumptions, including those regarding expected market rates of return and volatility, contract surrender rates and mortality experience, and, reserves for guaranteed withdrawal benefits are considered market risk benefits and reported at fair value;

4.exclusion of certain assets designated as nonadmitted assets from the Statements of Admitted Assets, Liabilities and Capital and Surplus for statutory purposes by directly charging surplus, whereas on a GAAP basis, no such charges are recorded;

5.establishment of a formula reserve for realized and unrealized losses due to default and equity risk associated with certain invested assets (Asset Valuation Reserve ("AVR")) for statutory purposes; as well as the deferral and amortization of realized gains and losses, caused by changes in interest rates during the period the asset is held, into income over the original life to maturity of the asset sold (Interest Maintenance Reserve ("IMR")) for statutory purposes; whereas on a GAAP basis, no such formula reserve is required and realized gains and losses are recognized in the period the asset is sold;

6.the reporting of reserves and benefits, net of reinsurance ceded for statutory purposes; whereas on a GAAP basis, reserves are reported gross of reinsurance with reserve credits presented as recoverable assets, net of an allowance for expected credit losses;

9
TALCOTT RESOLUTION LIFE AND ANNUITY INSURANCE COMPANY
NOTES TO STATUTORY-BASIS FINANCIAL STATEMENTS
YEARS ENDED DECEMBER 31, 2025, 2024 AND 2023


7.for statutory purposes, asset-backed securities, excluding residual tranches or interests, are carried at amortized cost, except those rated in NAIC class 6, which are carried at the lower of amortized cost or fair value in accordance with the provisions of SSAP No. 43 - Asset-Backed Securities ("SSAP No. 43"). Significant changes in estimated cash flows from the original purchase assumptions are accounted for using the prospective method, except for highly rated securities, which use the retrospective method. Debt investments that do not meet the requirements of an issuer credit obligation in SSAP No. 26 - Bonds ("SSAP No. 26") or an asset-backed security in SSAP No. 43 are carried at the lower of amortized cost or fair value in accordance with SSAP No. 21- Other Admitted Assets ("SSAP No. 21"). In accordance with guidance in SSAP No. 21 - amortized cost for such debt investments is determined in a manner consistent with asset-backed securities within the scope of SSAP No. 43. GAAP requires that fixed maturities and loan-backed and structured securities be classified as "held-to-maturity," "available-for-sale" or "trading," based on the Company's intentions with respect to the ultimate disposition of the security and its ability to affect those intentions. The Company's bonds and asset-backed securities were classified on a GAAP basis as "available-for-sale" and accordingly, these investments were reflected at fair value with the corresponding impact included as a separate component of Stockholder's Equity;

8.for statutory purposes, Separate Account liabilities are calculated using prescribed actuarial methodologies, which approximate the market value of Separate Account assets, less applicable surrender charges. The Separate Account surplus generated by these reserving methods is recorded as an amount due to or from Separate Accounts on the Statements of Admitted Assets, Liabilities and Capital and Surplus, with changes reflected in the Statements of Operations. On a GAAP basis, Separate Account assets and liabilities must meet specific conditions to qualify as a Separate Account asset or liability. Amounts reported for Separate Account assets and liabilities are based upon the fair value of the underlying assets;

9.the consolidation of subsidiaries is required for GAAP reporting, whereas statutory accounting requires standalone financial statements with earnings of subsidiaries reflected as changes in unrealized gains or losses in surplus;

10.statutory deferred income taxes, which provide for tax temporary differences, are subject to limitation on deferred tax assets and are charged directly to surplus, whereas, GAAP includes tax temporary differences recognized as a component of net income, without limitation.

11.comprehensive income and its components are not presented in the statutory-basis financial statements;

12.for statutory purposes derivative instruments that qualify for hedging, replication, or income generation are accounted for in a manner consistent with the hedged item, cash instrument and covered asset, respectively, which is typically amortized cost. Derivative instruments held for other investment and risk management activities, which do not receive hedge accounting treatment, receive fair value accounting for statutory purposes and are recorded at fair value with corresponding changes in value reported in unrealized gains and losses within surplus. For GAAP, derivative instruments are recorded at fair value with changes in value reported in earnings, with the exception of cash flow hedges and net investment hedges of a foreign operation, which are carried at fair value with changes in value reported as a separate component of Stockholder's Equity.

13.embedded derivatives for statutory accounting are not bifurcated from the host contract, whereas, GAAP accounting requires the embedded derivative to be bifurcated from the host instrument, accounted for at fair value and reported separately.

14.for statutory purposes securities that are in an unrealized loss position are reviewed to determine if an OTTI is present based on (a) the length of time and the extent to which fair value has been less than cost or amortized cost, (b) changes in the financial condition, credit rating and near-term prospects of the issuer, and (c) whether the debtor is current on contractually obligated payments; if the decline is determined other than temporary, an impairment charge is recorded and the previous cost less impairment becomes the new cost basis. For GAAP, credit impairment on "available-for-sale securities" is recognized through an allowance for credit losses as opposed to a direct write down of the security and improvements in expected cash flows are recognized immediately in income as a reduction in the allowance; the amount of time a security is in an unrealized loss position is not considered when assessing impairment.

Aggregate Reserves for Life, Annuity and Accident and Health Policies and Contracts and Liability for Deposit-Type Contracts

10
TALCOTT RESOLUTION LIFE AND ANNUITY INSURANCE COMPANY
NOTES TO STATUTORY-BASIS FINANCIAL STATEMENTS
YEARS ENDED DECEMBER 31, 2025, 2024 AND 2023


Aggregate reserves for payment of future life, health and annuity benefits were computed in accordance with applicable actuarial standards. Reserves for life insurance policies are generally based on the 1941, 1958, 1980 and 2001 Commissioner's Standard Ordinary Mortality Tables and various valuation rates ranging from 2.00% to 6.00%. Fixed Accumulation and On-benefit annuity reserves are based principally on individual and group annuity mortality tables at various rates ranging from 1.00% to 8.75% and using the Commissioner's Annuity Reserve Valuation Method ("CARVM"). Variable Annuity reserves are calculated based on Section 21 of the Valuation Manual Requirements for Principle-Based Reserves for Variable Annuities ("VM-21") and Actuarial Guidelines XLIII CARVM for Variable Annuities ("AG43"). Accident and health reserves are established using a two year preliminary term method and morbidity tables based primarily on Company experience.

For non-interest sensitive ordinary life plans, the Company waives deduction of deferred fractional premiums upon death of insured. Return of the unearned portion of the final premium is governed by the terms of the contract. The Company does not have any forms for which the cash values are in excess of the legally computed reserve.

Extra premiums are charged for substandard lives, in addition to the regular gross premiums for the true age. Mean reserves for traditional insurance products are determined by computing the regular mean reserve for the plan at the true age, and adding one-half (1/2) of the extra premium charge for the year. For plans with explicit mortality charges, mean reserves are based on appropriate multiples of standard rates of mortality.

As of December 31, 2025 and 2024, the Company had $30,235,981 and $29,111,981, respectively, of insurance in force, subject to 100% reinsurance to The Prudential Insurance Company of America ("Prudential"), for which the gross premiums are less than the net premiums according to the standard valuation set by the State of Connecticut. Reserves to cover the above insurance at December 31, 2025 and 2024 totaled $141,943 and $160,568 respectively, also subject to 100% reinsurance to Prudential.

The Company has established Separate Accounts to segregate the assets and liabilities of certain life insurance, pension and annuity contracts that must be segregated from the Company's General Account assets under the terms of its contracts. The assets consist primarily of marketable securities and are reported at fair value. Premiums, benefits and expenses relating to these contracts are reported in the Statements of Operations.
11
TALCOTT RESOLUTION LIFE AND ANNUITY INSURANCE COMPANY
NOTES TO STATUTORY-BASIS FINANCIAL STATEMENTS
YEARS ENDED DECEMBER 31, 2025, 2024 AND 2023



An analysis of annuity actuarial reserves and deposit fund liabilities by withdrawal characteristics for General and Separate Account liabilities as of December 31, 2025 is presented below:

A. INDIVIDUAL ANNUITIES
Separate Separate
General Accounts with Accounts % of
Account Guarantees Nonguaranteed Total Total
1. Subject to discretionary withdrawal
a. With market value adjustment $ 1,413,997 $ - $ - $ 1,413,997 0.01 %
b. At book value less current surrender charge of 5% or more 947,613 - - 947,613 0.00 %
c. At fair value - - 17,544,674,767 17,544,674,767 79.01 %
d. Total with market value adjustment or at fair value (total of 1 through 3) 2,361,610 - 17,544,674,767 17,547,036,377 79.02 %
e. At book value without adjustment (minimal or no charge or adjustment) 942,663,958 - - 942,663,958 4.24 %
2. Not subject to discretionary withdrawal 3,499,701,600 - 217,581,396 3,717,282,996 16.74 %
3. Total (gross: direct + assumed) 4,444,727,168 - 17,762,256,163 22,206,983,331 100.00 %
4. Reinsurance ceded 2,072,183,915 - - 2,072,183,915
5. Total (net) $ 2,372,543,253 $ - $ 17,762,256,163 $ 20,134,799,416
6. Amount included in A(1)b above that will move to A(1)e in the year after the statement date: $ 473,807 $ - $ - $ 473,807

B. GROUP ANNUITIES
Separate Separate
General Accounts with Accounts % of
Account Guarantees Nonguaranteed Total Total
1. Subject to discretionary withdrawal
a. With market value adjustment $ - $ - $ - $ - 0.00 %
b. At book value less current surrender charge of 5% or more 392 - - 392 0.02 %
c. At fair value - - 2,225,026 2,225,026 88.02 %
d. Total with market value adjustment or at fair value (total of 1 through 3) 392 - 2,225,026 2,225,418 88.04 %
e. At book value without adjustment (minimal or no charge or adjustment) 302,288 - - 302,288 11.96 %
2. Not subject to discretionary withdrawal - - - - 0.00 %
3. Total (gross: direct + assumed) 302,680 - 2,225,026 2,527,706 100.00 %
4. Reinsurance ceded 302,680 - - 302,680
5. Total (net) $ - $ - $ 2,225,026 $ 2,225,026
6. Amount included in B(1)b above that will move to B(1)e in the year after the statement date: $ 196 $ - $ - $ 196


12
TALCOTT RESOLUTION LIFE AND ANNUITY INSURANCE COMPANY
NOTES TO STATUTORY-BASIS FINANCIAL STATEMENTS
YEARS ENDED DECEMBER 31, 2025, 2024 AND 2023


C. DEPOSIT-TYPE CONTRACTS
Separate Separate
General Accounts with Accounts % of
Account Guarantees Nonguaranteed Total Total
1. Subject to discretionary withdrawal
a. With market value adjustment $ - $ - $ - $ - 0.00 %
b. At book value less current surrender charge of 5% or more - - - - 0.00 %
c. At fair value - - - - 0.00 %
d. Total with market value adjustment or at fair value (total of 1 through 3) - - - - 0.00 %
e. At book value without adjustment (minimal or no charge or adjustment) 1,823,135 - - 1,823,135 0.31 %
2. Not subject to discretionary withdrawal 592,844,501 - - 592,844,501 99.69 %
3. Total (gross: direct + assumed) 594,667,636 - - 594,667,636 100.00 %
4. Reinsurance ceded 468,977,563 - - 468,977,563
5. Total (net) $ 125,690,073 $ - $ - $ 125,690,073
6. Amount included in C(1)b above that will move to C(1)e in the year after the statement date: $ - $ - $ - $ -

Reconciliation of total annuity actuarial reserves and deposit fund liabilities:
F. Life and Accident & Health Annual Statement:
1. Exhibit 5, Annuities Section, Total (net) $ 2,372,516,279
2. Exhibit 5, Supplementary Contract Section, Total (net) 26,974
3. Exhibit 7, Deposit-Type Contracts Section, Total (net) 125,690,073
4. Subtotal 2,498,233,326
Separate Account Annual Statement: -
5. Exhibit 3, Annuities Section, Total (net) 17,764,481,189
6. Exhibit 3, Supplemental Contract Section, Total (net) -
7. Policyholder dividend and coupon accumulations -
8. Policyholder premiums -
9. Guaranteed interest contracts -
10. Exhibit 4, Deposit-Type Contracts Section, Total (net) -
11. Subtotal 17,764,481,189
12. Combined total $ 20,262,714,515



13
TALCOTT RESOLUTION LIFE AND ANNUITY INSURANCE COMPANY
NOTES TO STATUTORY-BASIS FINANCIAL STATEMENTS
YEARS ENDED DECEMBER 31, 2025, 2024 AND 2023


An analysis of life actuarial reserves by withdrawal characteristics for General and Separate Account liabilities as of December 31, 2025 is presented below:

A. General Account
Account Value Cash Value Reserve
1. Subject to discretionary withdrawal, surrender values, or policy loans:
a. Term Policies with Cash Value $ 75,414,586 $ 75,557,238 $ 891,117,233
b. Universal Life 765,469,098 766,530,946 811,050,031
c. Universal Life with Secondary Guarantees 3,006,361,823 2,728,250,934 11,289,541,877
d. Indexed Universal Life 452,701,643 433,761,905 486,605,357
e. Indexed Universal Life with Secondary Guarantees - - -
f. Indexed Life - - -
g. Other Permanent Cash Value Life Insurance - 2,801,156 3,064,664
h. Variable Life - - -
i. Variable Universal Life 527,417,110 525,810,790 659,735,756
j. Miscellaneous Reserves - - -
2. Not subject to discretionary withdrawal or no cash values
a. Term Policies without Cash Value XXX XXX 34,866,207
b. Accidental Death Benefits XXX XXX 48,773
c. Disability - Active Lives XXX XXX 504,535
d. Disability - Disabled Lives XXX XXX 41,601,912
e. Miscellaneous Reserves XXX XXX 682,834,435
3. Total (gross: direct + assumed) 4,827,364,260 4,532,712,969 14,900,970,780
4. Reinsurance Ceded 4,308,427,384 4,011,882,492 14,342,263,125
5. Total (net) (3) - (4) $ 518,936,876 $ 520,830,477 $ 558,707,655

B. Separate Account with Guarantees

Not applicable.

C. Separate Account Nonguaranteed

Account Value Cash Value Reserve
1. Subject to discretionary withdrawal, surrender values, or policy loans:
a. Term Policies with Cash Value $ - $ - $ -
b. Universal Life - - -
c. Universal Life with Secondary Guarantees - - -
d. Indexed Universal Life - - -
e. Indexed Universal Life with Secondary Guarantees - - -
f. Indexed Life - - -
g. Other Permanent Cash Value Life Insurance - - -
h. Variable Life - - -
i. Variable Universal Life 6,300,546,703 6,300,546,703 6,300,546,703
j. Miscellaneous Reserves - - -
2. Not subject to discretionary withdrawal or no cash values
a. Term Policies without Cash Value XXX XXX -
b. Accidental Death Benefits XXX XXX -
c. Disability - Active Lives XXX XXX -
d. Disability - Disabled Lives XXX XXX -
e. Miscellaneous Reserves XXX XXX -
3. Total (gross: direct + assumed) 6,300,546,703 6,300,546,703 6,300,546,703
4. Reinsurance Ceded - - -
5. Total (net) (3) - (4) $ 6,300,546,703 $ 6,300,546,703 $ 6,300,546,703
14
TALCOTT RESOLUTION LIFE AND ANNUITY INSURANCE COMPANY
NOTES TO STATUTORY-BASIS FINANCIAL STATEMENTS
YEARS ENDED DECEMBER 31, 2025, 2024 AND 2023


Reconciliation of total life actuarial reserves and deposit fund liabilities:
D. Life and Accident & Health Annual Statement:
1. Exhibit 5, Life Insurance Section, Total (net) $ 550,807,305
2. Exhibit 5, Accidental Death Benefits Section, Total (net)
48,773
3. Exhibit 5, Disability - Active Lives Section, Total (net)
386,184
4. Exhibit 5, Disability - Disabled Lives Section, Total (net)
3,384,748
5. Exhibit 5, Miscellaneous Reserves Section, Total (net)
4,080,645
6. Subtotal
558,707,655
Separate Account Annual Statement:
7. Exhibit 3, Line 0199999, Column 2
6,300,546,703
8. Exhibit 3, Line 0499999, Column 2
-
9. Exhibit 3, Line 0599999, Column 2
-
10. Subtotal (Lines (7) through (9))
6,300,546,703
11. Combined Total ((6) and (10)) $ 6,859,254,358

Investments

Investments in unaffiliated bonds, other than asset backed securities, rated in NAIC classes 1-5 are carried at amortized cost and unaffiliated bonds rated in NAIC class 6 are carried at the lower of amortized cost or fair value. Short-term investments include all investments whose maturities, at the time of acquisition, are one year or less and are stated at amortized cost. Money market mutual funds, which are included in cash equivalents, are reported at fair value. Unaffiliated common stocks are carried at fair value. Investments in stocks of subsidiaries, controlled and affiliated ("SCA") companies are based on the net worth of the subsidiary in accordance with SSAP No. 97 (Investment in Subsidiary, Controlled, and Affiliated Entities). The change in the carrying value is recorded as a change in net unrealized capital gains (losses), a component of unassigned surplus. Highest-quality or high-quality redeemable unaffiliated preferred stocks (NAIC designations 1 to 3), which have characteristics of debt securities, are valued at cost or amortized cost. All other unaffiliated redeemable preferred stocks (NAIC designation 4 to 6) are reported at the lower of cost, amortized cost, or fair value. Unaffiliated perpetual preferred stocks are valued at fair value, not to exceed any currently effective call price. Mortgage loans on real estate are stated at the outstanding principal balance, less any allowances for credit losses. Asset backed securities are carried at either amortized cost or the lower of amortized cost or fair value in accordance with the provisions of SSAP No. 43R. Significant changes in estimated cash flows from the original purchase assumptions are accounted for using the prospective method, except for highly rated securities, which use the retrospective method. The Company has ownership interests in joint ventures, investment partnerships and limited liability companies. The Company carries these interests based upon audited financial statements in accordance with SSAP No. 48 (Joint Ventures, Partnerships and Limited Liability Companies). Contract loans are carried at outstanding balance which approximates fair value.

Interest income from fixed maturities and mortgage loans on real estate is recognized when earned on the constant effective yield method based on estimated timing of cash flows. The amortization of premium and accretion of discount for fixed maturities also takes into consideration call and maturity dates that produce the lowest yield. For fixed rate securitized financial assets subject to prepayment risk, yields are recalculated and adjusted periodically to reflect historical and/or estimated future repayments using the retrospective method; however, if these investments are impaired, any yield adjustments are made using the prospective method. The Company has not elected under SSAP No. 43R to use the book value as of January 1, 1994 as the cost for applying the retrospective adjustment method to securities purchased prior to that date. Investment income on variable rate and interest only securities is determined using the prospective method. Prepayment fees on bonds and mortgage loans on real estate are recorded in net investment income when earned. Dividends are recorded as earned on the ex-dividend date. For partnership investments, income is earned when cash distributions of income are received and the total distribution amount is less than undistributed accumulated earnings related to the investment. If the distributions are in excess of the investment's undistributed accumulated earnings, the carrying value of investment will instead be reduced. For impaired debt securities, the Company accretes the new cost basis to the estimated future cash flows over the expected remaining life of the security by prospectively adjusting the security's yield.

Due and accrued investment income amounts over 90 days past due are nonadmitted. The Company had investment income due and accrued of $6,687 and $97,388 excluded from surplus at December 31, 2025 and 2024.

Net realized gains and losses from investment sales represent the difference between the sales proceeds and the cost or amortized cost of the investment sold, determined on a specific identification basis. Net realized capital gains and losses also
15
TALCOTT RESOLUTION LIFE AND ANNUITY INSURANCE COMPANY
NOTES TO STATUTORY-BASIS FINANCIAL STATEMENTS
YEARS ENDED DECEMBER 31, 2025, 2024 AND 2023


result from termination or settlement of derivative contracts that do not qualify, or are not designated, as a hedge for accounting purposes. Impairments are recognized within net realized capital losses when investment declines in value are deemed other-than-temporary. Foreign currency transaction gains and losses are also recognized within net realized capital gains and losses.

The AVR is designed to provide a standardized reserving process for realized and unrealized losses due to default and equity risks associated with invested assets in accordance with SSAP No. 7 (Asset Valuation Reserve and Interest Maintenance Reserve). The AVR balances were $122,433,568 and $126,399,841 as of December 31, 2025 and 2024, respectively. Additionally, the IMR captures net realized capital gains and losses, net of applicable income taxes, resulting from changes in interest rates and amortizes these gains or losses into income over the life of the bond, redeemable preferred stock or mortgage loan sold or adjusts the IMR when an insurer reinsures a block of its in-force liabilities. The IMR balances as of December 31, 2025 and 2024 were $96,162,702 and $33,676,604, respectively. The net capital (losses) gains captured in the IMR, net of taxes, in 2025, 2024 and 2023 were ($9,491,621), ($7,715,428) and ($3,207,953), respectively. The amount of income amortized from the IMR, net of taxes, included in the Company's Statements of Operations in 2025, 2024 and 2023 was $2,098,767, $901,204 and $1,828,765, respectively. Realized capital gains and losses, net of taxes, not included in the IMR are reported in the Statements of Operations. The Company released (gains) / losses from the reserve of ($74,076,487) and ($1,820,444) as of December 31, 2025 and 2024, respectively, as a result of reinsurance, see Note 6.

The Company's accounting policy requires that a decline in the value of a bond or equity security below its cost or amortized cost basis be assessed to determine if the decline is other-than-temporary. In addition, for securities expected to be sold, an OTTI charge is recognized if the Company does not expect the fair value of a security to recover to its cost or amortized cost basis prior to the expected date of sale. The previous cost basis less the impairment becomes the new cost basis. The Company has a security monitoring process overseen by a committee of investment and accounting professionals that identifies securities that, due to certain characteristics, as described below, are subjected to an enhanced analysis on a quarterly basis.

For certain securitized financial assets with contractual cash flows (including asset-backed securities), SSAP No. 43 requires the Company to periodically update its best estimate of cash flows over the life of the security. If management determines that its best estimate of expected future cash flows discounted at the security's effective yield prior to the impairment are less than its amortized cost, then management will assess for OTTI. The Company's best estimate of expected future cash flows discounted at the security's effective yield prior to the impairment becomes its new cost basis. Estimating future cash flows is a quantitative and qualitative process that incorporates information received from third-party sources along with certain internal assumptions and judgments regarding the future performance of the underlying collateral. As a result, actual results may differ from estimates. Projections of expected future cash flows may change based upon new information regarding the performance of the underlying collateral. In addition, if the Company does not have the intent and ability to hold a security subject to the provisions of SSAP No. 43 until the recovery of value, the security is written down to fair value.

Securities that are in an unrealized loss position are reviewed at least quarterly to determine if an OTTI is present based on certain quantitative and qualitative factors. The Company considers the following factors, where applicable depending on the type of securities, in the evaluation of whether a decline in value is other than temporary: (a) the likelihood that the Company will be able to collect all amounts due according to the contractual terms of the debt security; (b) the present value of the expected future cash flows of the security; (c) the characteristics, quality and value of the underlying collateral or issuer securing the position; (d) collateral structure; (e) the length of time and extent to which the fair value has been below amortized cost; (f) the financial condition and near-term prospects of the issuer; (g) adverse conditions related to the security or industry; (h) the rating of the security; (i) the Company's ability and intent to hold the investment for a period of time sufficient to allow for an anticipated recovery to amortized cost; and (j) other qualitative and quantitative factors in determining the existence of OTTI including, but not limited to, unrealized loss trend analysis and significant short-term changes in value. Once an impairment charge has been recorded, the Company continues to review the impaired securities for further OTTI on an ongoing basis.

Net realized capital losses resulting from write-downs for OTTI on corporate and asset-backed bonds were $0, $0 and $1,351,669 for the years ended December 31, 2025, 2024 and 2023, respectively. Net realized capital losses resulting from write-downs for OTTI on equities were immaterial for the years ended December 31, 2025, 2024, and 2023. See additional information on OTTI in Note 3.

Mortgage loans on real estate are considered to be impaired when management estimates that, based upon current available information and events, it is probable that the Company will be unable to collect all amounts of principal and interest due according to the contractual terms of the mortgage loan agreement. A valuation allowance is recorded on a loan-by-loan basis in net unrealized capital losses for the excess of the carrying value of the mortgage loan over the fair value of its underlying
16
TALCOTT RESOLUTION LIFE AND ANNUITY INSURANCE COMPANY
NOTES TO STATUTORY-BASIS FINANCIAL STATEMENTS
YEARS ENDED DECEMBER 31, 2025, 2024 AND 2023


collateral less estimated costs to sell. Collectability and estimated decreases in collateral values are also assessed on a loan-by-loan basis considering all events and conditions relevant to the loan. This evaluation is inherently subjective as it requires estimates that are susceptible to significant revisions as more information becomes available, as changes occur in the market or as negotiations with the borrowing entity evolve. If there is a change in the fair value of the underlying collateral or the estimated loss on the loan, the valuation allowance is adjusted accordingly. An OTTI occurs upon the realization of a credit loss, typically through foreclosure or after a decision is made to accept a discounted payoff, and is recognized in realized capital losses. The previously recorded valuation allowance is reversed from unrealized capital losses. When an OTTI is recorded, a new cost basis is established reflecting estimated value of the collateral. Changes in valuation allowances are recorded in net unrealized capital gains and losses. Interest income on an impaired loan is accrued to the extent it is deemed collectable and the loan continues to perform under its original or restructured terms. Interest income on defaulted loans is recognized when received. As of December 31, 2025, 2024 and 2023, the Company had $0 impaired mortgage loans on real estate with related allowances for credit losses, respectively.

For derivative instruments accounted for in accordance with SSAP No. 86, Derivatives ("SSAP No. 86"), on the date the derivative contract is entered into, the Company designates the derivative as hedging, replication, or held for other investment and/or risk management activities. The Company's derivative transactions are permitted uses of derivatives under the derivative use plans required by the Department.

Derivatives used in hedging relationships are accounted for in a manner consistent with the hedged item. Typically, cost paid or consideration received at inception of a contract is reported on the balance sheet as a derivative asset or liability, respectively. Periodic cash flows and accruals are recorded in a manner consistent with the hedged item.

Derivatives used in replication relationships are accounted for in a manner consistent with the cash instrument and the replicated asset. Typically, cost paid or consideration received at inception of the contract is recorded on the balance sheet as a derivative asset or liability, respectively. Periodic cash flows and accruals of income/expense are recorded as a component of derivative net investment income. Upon termination of the derivative, any gain or loss is recognized as a derivative capital gain or loss.

Derivatives used in income generation relationships are accounted for in a manner consistent with the associated covered asset. Typically, consideration received at inception of the contract is recorded on the balance sheet as a derivative liability. Periodic cash flows and accruals of income/expense are recorded as a component of derivative net investment income. Upon termination, any remaining derivative liability, along with any disposition payments are recorded as a derivative capital gain or loss.

Derivatives held for other investment and/or risk management activities are reported at fair value in accordance with SSAP No. 86 and the changes in fair value are recorded in derivative unrealized gains and losses. Periodic cash flows and accruals of income/expense are recorded as components of derivative net investment income.

Adoption of Accounting Standards

Accounting Changes

For the year ended December 31, 2025, the Company changed its accounting policy for deferrals of gains resulting from in-force assumed and ceded reinsurance transactions. The Company's prior policy presented such gains (and related amortization) as Aggregate Write-ins for Gains and Losses in Surplus and as Aggregate Write-ins for Other-than-Special Surplus. The Company's updated policy is to present such gains (and related amortization) as Changes in Surplus due to Reinsurance and unamortized reinsurance gains will be reflected as Unassigned Funds. The Company accounted for this change as a change in accounting principle pursuant to SSAP No. 3, Accounting Changes and Corrections of Errors given both presentations are acceptable under different NAIC guidance, the Company believes the new presentation is better aligned with the nature of such gains and Unassigned Funds as well as with the Annual Statement Instructions..

The Company notes retrospective application of the change does not impact total Assets, Liabilities or Net Income for years ended December 31, 2025 or December 31, 2024. Implementation of the change resulted in a decrease in Other-than-special surplus of $119.4 million reflected through Aggregate Write-ins for Gains and Losses in Surplus. The change also results in a corresponding increase in Unassigned Funds of $119.4 million reflected through Cumulative Effect of Change in Accounting Principles.

17
TALCOTT RESOLUTION LIFE AND ANNUITY INSURANCE COMPANY
NOTES TO STATUTORY-BASIS FINANCIAL STATEMENTS
YEARS ENDED DECEMBER 31, 2025, 2024 AND 2023


For the year ended December 31, 2025, the Company updated its method to identify distributions that represent a return of capital and those that represent net investment income under SSAP No. 48, Joint Ventures, Partnerships and Limited Liability Companies. The Company's updated method aligns with objective financial metrics as all distributions are now recognized in net investment income when declared, provided they do not exceed undistributed accumulated earnings. The Company's prior method included additional limitations on the recognition of net investment income based on correspondence with the applicable General Partners. The Company concluded the change represents a change in accounting principle pursuant to SSAP No. 3, Accounting Changes and Corrections of Errors. The Company notes retrospective application of the change does not impact beginning surplus, nor does the change impact total assets, liabilities, or surplus for the years ended December 31, 2025 or December 31, 2024.

In 2025, the NAIC adopted revisions to SSAP No. 56 - Separate Accounts to clarify guidance for how to transfer any separate account assets carried at book value between the separate and general accounts. The Company elected early adoption of this guidance in 2025, however, it is not material to the Company.

In 2025, the NAIC adopted revisions to SSAP No. 41 - Surplus Notes to clarify that capital notes should be nonadmitted in the event in which the regulatory authority halts principal or interest payments. The Company adopted this guidance in 2025, however, it is not material to the Company.

In 2025, the NAIC adopted updates to SSAP No. 1 - Accounting Policies, Risks & Uncertainties, and Other Disclosures to require the reporting of assets held under modified coinsurance ("Modco") or funds withheld ("FWH") agreements within the restricted asset disclosure. The NAIC also adopted updates to SSAP No. 1 that require disclosure of investments held in FWH or Modco portfolios that are affiliated assets of the reinsurer. The Company adopted this guidance in 2025 and the updates are reflected in the disclosures within these Financial Statements.

In 2025, the NAIC modified Appendix A-791 - Life and Health Reinsurance Agreements to clarify requirements when evaluating risk transfer for combined coinsurance and yearly renewable term ("YRT") reinsurance arrangements. The Company adopted this guidance in 2025, however, it is not material to the Company.

In 2024, the NAIC modified SSAP No. 15 - Debt and Holding Company Obligations to require additional disclosures related to unused commitments and lines of credit, disaggregated by short and long-term commitments. The Company adopted this guidance in 2024, however, it is not material to the Company.

In 2024, the NAIC modified SSAP No. 86 - Derivatives to require additional disclosures identifying where cash flows associated with derivative transactions are presented in the Statement of Cash Flow. The Company adopted this guidance in 2024, however, it is not material to the Company.

In 2023, the NAIC adopted revisions to several statutory statements to finalize guidance throughout applicable standards related to the updated definition of a bond. The changes incorporated a principles-based definition which categorizes bonds as either issuer credit obligations (under SSAP No. 26) or asset-backed securities (under SSAP No. 43). The Company adopted the revised standards effective January 1, 2025 and reclassified investments in accordance with the new principles-based definition. Approximately $47 million of investments previously reported were reclassified. Of these investments, approximately $30 million of book adjusted carrying value went from an amortized cost measurement to a fair value measurement, which resulted in an approximate a $4 million unrealized loss to surplus.

In 2023, the NAIC modified SSAP No. 34 - Investment Income Due and Accrued to require additional disclosures to capture gross, non-admitted and admitted amounts of accrued interest income and to separately identify the cumulative amount of paid-in-kind interest income included in the current principal balance. The guidance is effective December 31, 2023. The Company adopted this guidance in 2023, however, it is not material to the Company.

In 2023, the NAIC modified SSAP No. 43 - Revised Loan-Backed and Structured Securities to add collateralized loan obligations (CLO) to the financial modeling guidance and clarify CLOs are not captured as legacy securities. This guidance is effective December 31, 2023 and will eventually result in CLOs no longer being eligible to use credit rating provider ratings to determine NAIC designation. The Company adopted this guidance in 2023, but effects of the guidance will not have an impact until CLO modeling methodology is implemented by the Securities Valuation Office.

In 2023, the NAIC modified several statutory statements to ensure consistency in the reporting of residual interests, irrespective of legal form. The changes incorporate the 2022 principles-based definition of residual interests, which are characterized as
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TALCOTT RESOLUTION LIFE AND ANNUITY INSURANCE COMPANY
NOTES TO STATUTORY-BASIS FINANCIAL STATEMENTS
YEARS ENDED DECEMBER 31, 2025, 2024 AND 2023


investments in structures backed by a discrete pool of collateral assets, where cash flows first provide principal and interest payments to debt holders, with remaining funds provided to holders of residual interests. The changes modify the following statutory statements: SSAP No. 30 - Revised Common Stock, SSAP No. 32 - Revised Preferred Stock, SSAP 43 - Revised Loan-Backed and Structured Securities, and SSAP No. 48 - Joint Ventures, Partnerships and Limited Liability Companies. All changes are effective December 31, 2023. The Company adopted this guidance in 2023, however, it is not material to the Company.

In 2023, the NAIC adopted revisions to several statutory statements to finalize guidance throughout applicable standards related to the updated definition of a bond. The changes incorporated a principles-based definition which categorizes bonds as either issuer credit obligations (under SSAP No. 26 to be reported on Schedule D-1-1) or asset-backed securities (under SSAP No. 43 to be reported on Schedule D-1-2). The Company adopted the revised standards effective January 1, 2025 and reclassified investments in accordance with the new principles-based definition. Approximately $47 million of investments previously reported on Schedule D Part 1 were reclassified to Schedule BA. Of these investments, approximately $30 million of book adjusted carrying value went from an amortized cost measurement to a fair value measurement, which resulted in an approximate a $4 million unrealized loss to surplus.

In 2024, the NAIC modified SSAP No. 21 - Other Admitted Assets to prescribe a measurement framework for all residual interests regardless of legal form. The updates allow for a policy election of the Allowable Earned Yield Method or Practical Expedient Method (i.e., cost recovery method). The Company adopted the revised standards effective January 1, 2025 and elected the Practical Expedient Method. However, the updates are not material to the Company.

Recently Issued Accounting Standards

In 2025, the NAIC adopted revisions that modify the SSAP No. 37 - Mortgage Loans to clarify that mortgage loans held by an insurer through a qualifying Delaware Statutory Trust ("DST") will be reported on Schedule B - Mortgage Loans. The Company will adopt the revised standards effective January 1, 2026; however, the Company does not expect the changes to have a material impact.


19
TALCOTT RESOLUTION LIFE AND ANNUITY INSURANCE COMPANY
NOTES TO STATUTORY-BASIS FINANCIAL STATEMENTS
YEARS ENDED DECEMBER 31, 2025, 2024 AND 2023


3. Investments

A. Components of Net Investment Income
For the years ended December 31,
2025 2024 2023
Interest income from bonds and short-term investments $ 152,006,959 $ 197,751,860 $ 217,743,428
Interest income from affiliated bonds and short-term investments 11,618,811 15,195,247 -
Dividends from common and preferred stocks 1,176,237 1,054,713 244,909
Interest income from contract loans 11,407 16,347 16,073
Interest income from mortgage loans on real estate 31,786,806 32,178,948 38,351,807
Interest and dividends from other investments 39,027,287 34,216,461 24,128,880
Gross investment income 235,627,507 280,413,576 280,485,097
Less: Investment expenses 6,393,833 6,275,747 5,554,032
Less: Interest expense $ 7,890,538 $ - $ -
Net investment income $ 221,343,136 $ 274,137,829 $ 274,931,065

B. Components of Net Unrealized Capital (Losses) Gains on Bonds and Short-Term Investments
As of December 31,
2025 2024 2023
Gross unrealized capital gains $ 35,622,764 $ 25,657,990 $ 55,090,753
Gross unrealized capital losses (312,219,714) (371,997,649) (346,996,508)
Net unrealized capital (losses) gains (276,596,950) (346,339,659) (291,905,755)
Balance, beginning of year (346,339,659) (291,905,755) (411,649,895)
Change in net unrealized capital (losses) gains on bonds
and short-term investments $ 69,742,709 $ (54,433,904) $ 119,744,140

C. Components of Net Unrealized Capital Gains (Losses) on Common and Preferred Stocks
As of December 31,
2025 2024 2023
Gross unrealized capital gains $ 1,771,879 $ 2,448,340 $ 1,123,927
Gross unrealized capital losses (30,098) (957,676) (233,112)
Net unrealized capital gains (losses) 1,741,781 1,490,664 890,815
Balance, beginning of year 1,490,664 890,815 (4,466,187)
Change in net unrealized capital gains (losses) on
common and preferred stocks $ 251,117 $ 599,849 $ 5,357,002

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TALCOTT RESOLUTION LIFE AND ANNUITY INSURANCE COMPANY
NOTES TO STATUTORY-BASIS FINANCIAL STATEMENTS
YEARS ENDED DECEMBER 31, 2025, 2024 AND 2023


D. Components of Net Realized Capital Losses
For the years ended December 31,
2025 2024 2023
Bonds and short-term investments $ (13,586,816) $ (13,328,872) $ (9,560,845)
Common stocks - unaffiliated 1,425,505 2,002,920 167,016
Preferred stocks - unaffiliated (480,497) - -
Mortgage loans on real estate 3,586,459 (18,607,252) (7,828,471)
Derivatives (78,532,382) (130,394,309) (440,250,241)
Other invested assets (3,221,583) (1,724,980) 54,659,326
Other 9,779,253 - -
Net realized capital losses (81,030,061) (162,052,493) (402,813,215)
Capital loss tax expense 4,091,920 (677,642) 12,188,360
Net realized capital losses, after tax (85,121,981) (161,374,851) (415,001,575)
Less: Amounts transferred to IMR (9,491,622) (7,715,428) (3,207,953)
Net realized capital losses, after tax $ (75,630,359) $ (153,659,423) $ (411,793,622)

The following table summarizes sales activity of unaffiliated bond, short-term investments and equity securities before tax and transfers to the IMR (without maturities and calls):
For the years ended December 31,
2025 2024 2023
Bonds and short-term investments
Sale proceeds $ 2,167,009,107 $ 5,429,103,731 $ 3,652,187,797
Gross realized capital gains on sales 4,413,256 10,404,085 3,257,654
Gross realized capital losses on sales (20,379,973) (23,726,308) (9,657,467)
Unaffiliated common and preferred stock
Sale proceeds 23,016,291 2,501,415 25,987,746
Gross realized capital gains on sales 179,800 2,005,615 167,016
Gross realized capital losses on sales (480,568) - -

Additionally, for the years ended December 31, 2025, 2024 and 2023, there were $49,580, $31,566 and $269,680 of investment income generated on 1, 1, and 9 securities, respectively, as a result of prepayment penalties and acceleration fees on disposed securities with callable features.

E. Investments - Derivative Instruments

Overview

The Company utilizes a variety of Over-the counter ("OTC") derivatives, including OTC-cleared transactions, and exchange-traded derivative instruments as part of its overall risk management strategy. The types of instruments may include swaps, caps, floors, forwards, futures and options to achieve one of four Company-approved objectives: to hedge risk arising from interest rate, equity market, credit spread and issuer default, price or currency exchange rate risk or volatility; to manage liquidity; to control transaction costs; or to enter into replication transactions. On the date the derivative contract is entered into, the Company designates the derivative as hedging (fair value, cash flow, or net investment in a foreign operation), replication, or held for other investment and/or risk management activities, which primarily involves managing asset or liability related risks which do not qualify for hedge accounting under SSAP No. 86. The Company's derivative transactions are used in strategies permitted under the derivative use plans required by the Department.

Interest rate swaps, equity, and index swaps involve the periodic exchange of payments with other parties, at specified intervals, calculated using agreed upon rates or indices and notional principal amounts. Generally, no cash or principal payments are
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TALCOTT RESOLUTION LIFE AND ANNUITY INSURANCE COMPANY
NOTES TO STATUTORY-BASIS FINANCIAL STATEMENTS
YEARS ENDED DECEMBER 31, 2025, 2024 AND 2023


exchanged at the inception of the contract. Typically, at the time a swap is entered into, the cash flow streams exchanged by the counterparties are equal in value.
Credit default swaps entitle one party to receive a periodic fee in exchange for an obligation to compensate the other party should a credit event occur on the part of the referenced issuer.

Forward contracts are customized commitments that specify a rate of interest or currency exchange rate to be paid or received on an obligation beginning on a future start date and are typically settled in cash.

Financial futures are standardized commitments to either purchase or sell designated financial instruments at a future date for a specified price and may be settled in cash or through delivery of the underlying instrument. Futures contracts trade on organized exchanges. Margin requirements for futures are met by pledging securities or cash, and changes in the futures' contract values are settled daily in cash.

Option contracts grant the purchaser, for a premium payment, the right to either purchase from or sell to the issuer a financial instrument at a specified price, within a specified period or on a stated date.

Swaption contracts grant the purchaser, for a premium payment, the right to enter into an interest rate swap with the issuer on a specified future date.

Foreign currency swaps exchange an initial principal amount in two currencies, agreeing to re-exchange the currencies at a future date, at an agreed upon exchange rate. There may also be a periodic exchange of payments at specified intervals calculated using agreed upon rates and exchanged principal amounts.

The Company clears interest rate swap and certain credit default swap derivative transactions through central clearing houses. OTC-cleared derivatives require initial collateral at the inception of the trade in the form of cash or highly liquid collateral, such as U.S. Treasuries and government agency investments. Central clearing houses also require additional cash collateral as variation margin based on daily market value movements. In addition, OTC-cleared transactions include price alignment interest either received or paid on the variation margin, which is reflected in net investment income.

Strategies

The notional value, fair value, and carrying value of derivative instruments used during the years 2025 and 2024 are disclosed in the table presented below. During the years 2025 and 2024, the Company did not transact in or hold any positions related to net investment hedges in a foreign operation or income generation transactions. The notional amounts of derivative contracts represent the basis upon which pay or receive amounts are calculated and are not reflective of credit risk. The fair value of derivative instruments are based upon widely accepted pricing valuation models which utilize independent third-party data as inputs or independent broker quotations. For the years ended December 31, 2025 and 2024, the average fair values for derivatives held for other investment and/or risk management activities were $10,092,480 and $59,581,596, respectively. The Company did not have any unrealized gains or losses during 2025 and 2024 representing the component of the derivative instruments gain or loss from derivatives that no longer qualify for hedge accounting.

(Amounts in thousands) As of December 31, 2025 As of December 31, 2024
Derivative type by strategy Notional Value Fair Value Carrying Value Notional Value Fair Value Carrying Value
Cash flow hedges
Interest rate swaps $ 125,000 $ (10,540) $ - $ 125,000 $ (16,069) $ -
Foreign currency swaps 17,920 (154) (1,029) 22,324 1,523 1,362
Replication transactions
Interest rate swaps 200,000 (43,132) 66 200,000 (45,480) 66
Credit default swaps - - -
Other investment and/or Risk Management activities
Interest rate swaps - offsetting - - - 0 0 0
Macro hedge program 1,113,832 44,440 44,440 4,349,417 81,897 81,897
Total $ 1,456,752 $ (9,386) $ 43,477 $ 4,696,741 $ 21,871 $ 83,325

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TALCOTT RESOLUTION LIFE AND ANNUITY INSURANCE COMPANY
NOTES TO STATUTORY-BASIS FINANCIAL STATEMENTS
YEARS ENDED DECEMBER 31, 2025, 2024 AND 2023


Cash Flow Hedges

Interest rate swaps and index swaps: Interest rate swaps and index swaps are primarily used to convert interest receipts on floating-rate fixed maturity investments and liabilities to fixed rates or other floating rates. There were no gains and losses classified in unrealized gains and losses related to cash flow hedges that have been discontinued because it was no longer probable that the original forecasted transactions would occur by the end of the originally specified time period.

Foreign currency swaps: Foreign currency swaps are used to convert foreign currency denominated cash flows associated with certain foreign denominated fixed maturity investments and liabilities to U.S. dollars. The foreign fixed maturities and liabilities are hedged to minimize cash flow fluctuations due to changes in currency rates.

Replication Transactions

Interest rate swaps: The Company periodically enters into interest rate swaps as part of replication transactions.

Credit default swaps: The Company periodically enters into credit default swaps that assume credit risk as part of replication transactions. Replication transactions are used as an economical means to synthetically replicate the characteristics and performance of assets that are permissible investments under the Company's investment policies.
Other Investment and/or Risk Management Activities

The table below presents realized capital gains and (losses) on derivative instruments used for other investment and/or risk management activities.

(Amounts in thousands) Realized Gains (Losses)
By strategy For the year ended December 31, 2025 For the year ended December 31, 2024 For the year ended December 31, 2023
Credit default swaps $ 1,397 $ 2,968 $ 4,286
Foreign currency swaps and forwards 107 6 (23)
Interest rate swaps and swaptions - - 176
Macro hedge program (80,037) (133,368) (444,681)
Total $ (78,533) $ (130,394) $ (440,242)

Credit default swaps: The Company enters into swap agreements in which the Company reduces or assumes credit exposure from an individual entity, referenced index or asset pool. In addition, the Company may enter into credit default swaps to terminate existing swaps in hedging relationships, thereby offsetting the changes in value of the original swap.

Guaranteed Minimum Withdrawal Benefits ("GMWB") hedging derivatives: The Company utilizes GMWB hedging derivatives as part of an actively managed program designed to hedge a portion of the capital market risk exposures of the non-reinsured GMWB riders due to changes in interest rates, equity market levels, and equity volatility. These derivatives include customized swaps, interest rates swaps and futures, and equity swaps, options and futures, on certain indices including the S&P 500 index, EAFE index and NASDAQ index.

Equity index swaps, options, and futures: The Company enters into equity index swaps and futures to hedge equity risk of equity common stock investments. The Company also enters into equity index options to economically hedge the equity risk associated with various equity indexed products.

Interest rate swaps and swaptions: The Company enters into interest rate swaps and swaptions to manage duration between assets and liabilities. In addition, the Company may enter into interest rate swaps to terminate existing swaps in hedging relationships, thereby offsetting the changes in value in the original swap.

Macro hedge program: The Company utilizes equity options, swaps, futures, and foreign currency options to hedge against a decline in the equity markets and the resulting statutory surplus and capital impact primarily arising from GMDB and GMWB obligations. Included are equity options with financing premiums for which the premium is paid at the end of the derivative contract.

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TALCOTT RESOLUTION LIFE AND ANNUITY INSURANCE COMPANY
NOTES TO STATUTORY-BASIS FINANCIAL STATEMENTS
YEARS ENDED DECEMBER 31, 2025, 2024 AND 2023


Credit Risk Assumed through Credit Derivatives

The Company enters into credit default swaps that assume credit risk of a single entity or referenced index in order to synthetically replicate investment transactions that would be permissible under the Company's investment policies. The Company will receive periodic payments based on an agreed upon rate and notional amount and will only make a payment if there is a credit event. A credit event payment will typically be equal to the notional value of the swap contract less the value of the referenced security issuer's debt obligation after the occurrence of the credit event. A credit event is generally defined as a default on contractually obligated interest or principal payments or bankruptcy of the referenced entity. The credit default swaps in which the Company assumes credit risk primarily reference investment grade single corporate issuers and baskets, which include standard diversified portfolios of corporate and commercial mortgage-backed securities ("CMBS") issuers. The diversified portfolios of corporate issuers are established within sector concentration limits and may be divided into tranches that possess different credit ratings.

The Company's derivative counterparty exposure policy establishes market-based credit limits, favors long-term financial stability and creditworthiness of the counterparty and typically requires credit enhancement/credit risk reducing agreements. The Company minimizes the credit risk in derivative instruments by entering into transactions with high quality counterparties rated A or better, which are monitored and evaluated by the Company's risk management team and reviewed by senior management. OTC-cleared transactions reduce risk due to their ability to require daily variation margin, monitor the Company's ability to request additional collateral in the event of a counterparty downgrade, and act as an independent valuation source.

The Company has developed credit exposure thresholds which are based upon counterparty ratings. Credit exposures are measured using the market value of the derivatives, resulting in amounts owed to the Company by its counterparties or potential payment obligations from the Company to its counterparties. Credit exposures are generally quantified daily based on the prior business day's market value and collateral is pledged to and held by, or on behalf of, the Company to the extent the current value of derivatives exceeds the contractual thresholds. In accordance with industry standards and the contractual agreements, collateral is typically settled on the next business day. The Company may have exposure to credit risk for amounts below the exposure thresholds which are uncollateralized, as well as for market fluctuations that may occur between contractual settlement periods of collateral movements.

Counterparty exposure thresholds are developed for each of the counterparties based upon their ratings. In addition, the Company monitors counterparty credit exposure on a monthly basis to ensure compliance with Company policies and statutory limitations. The Company also generally requires that derivative contracts, other than exchange traded contracts, OTC-cleared swaps, certain forward contracts, and certain embedded and reinsurance derivatives, be governed by an International Swaps and Derivatives Association Master Agreement which is structured by legal entity and by counterparty and permits right of offset.

As of December 31, 2025 and 2024, the Company did not hold any material credit derivatives that assume credit risk.

Credit Risk

The Company's derivative counterparty exposure policy establishes market-based credit limits, favors long-term financial stability and creditworthiness of the counterparty and typically requires credit enhancement/credit risk reducing agreements. The Company minimizes the credit risk in derivative instruments by entering into transactions with high quality counterparties primarily rated A or better, which are monitored and evaluated by the Company's risk management team and reviewed by senior management. OTC-cleared transactions reduce risk due to their ability to require daily variation margin, monitor the Company's ability to request additional collateral in the event of a counterparty downgrade, and act as an independent valuation source.

The Company has developed credit exposure thresholds which are based upon counterparty ratings. Credit exposures are measured using the market value of the derivatives, resulting in amounts owed to the Company by its counterparties or potential payment obligations from the Company to its counterparties. Credit exposures are generally quantified daily based on the prior business day's market value and collateral is pledged to and held by, or on behalf of, the Company to the extent the current value of derivatives exceeds the contractual thresholds. In accordance with industry standards and the contractual agreements, collateral is typically settled on the next business day. The Company has exposure to credit risk for amounts below the exposure thresholds which are uncollateralized, as well as for market fluctuations that may occur between contractual settlement periods of collateral movements.

Counterparty exposure thresholds are developed for each of the counterparties based upon their ratings. The maximum uncollateralized threshold for a derivative counterparty is $5 million. In addition, the Company monitors counterparty credit
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TALCOTT RESOLUTION LIFE AND ANNUITY INSURANCE COMPANY
NOTES TO STATUTORY-BASIS FINANCIAL STATEMENTS
YEARS ENDED DECEMBER 31, 2025, 2024 AND 2023


exposure on a monthly basis to ensure compliance with Company policies and statutory limitations. The Company also generally requires that OTC derivative contracts be governed by an International Swaps and Derivatives Association Master Agreement which is structured by legal entity and by counterparty.

For the years ended December 31, 2025, 2024, and 2023, the Company had no losses on derivative instruments due to counterparty nonperformance.

F. Concentration of Credit Risk

The Company aims to maintain a diversified investment portfolio including issuer, sector and geographic stratification, where applicable, and has established certain exposure limits, diversification standards and review procedures to mitigate credit risk. As of December 31, 2025, the Company was not exposed to any credit concentration risk of a single issuer, excluding U.S. government and certain U.S. government agencies and wholly-owned subsidiaries, greater than 10% of the Company's capital and surplus.

G. Bonds, Cash Equivalents, Short-Term Investments, Common Stocks and Preferred Stocks
Gross Gross Estimated
Bonds, Cash Equivalents and Short-Term Investments Statement Unrealized Unrealized Fair
As of December 31, 2025 Value Gains Losses Value
U.S. government and government agencies and authorities
Guaranteed and sponsored - excluding asset-backed $ 519,258,337 $ - $ (186,107,497) $ 333,150,840
Guaranteed and sponsored - asset-backed 46,351,588 2,271,319 (3,387,031) 45,235,876
States, municipalities and political subdivisions 91,864,416 1,633,491 (6,379,975) 87,117,932
International governments 29,053,199 173,515 (192,324) 29,034,390
All other corporate - excluding asset-backed 1,558,695,179 32,810,111 (97,974,600) 1,493,530,690
All other corporate - asset-backed 747,739,426 1,931,939 (21,377,166) 728,294,199
Cash equivalents and short-term investments 122,505,472 1,269 - 122,506,741
Total bonds, cash equivalents and short-term investments $ 3,115,467,617 $ 38,821,644 $ (315,418,593) $ 2,838,870,668
Gross Gross Estimated
Common Stocks Unrealized Unrealized Fair
As of December 31, 2025 Cost Gains Losses Value
Common stocks - unaffiliated $ 8,642,494 $ 1,243,677 $ - $ 9,886,171
Common stocks - affiliated -
Total common stocks $ 8,642,494 $ 1,243,677 $ - $ 9,886,171
Gross Gross Estimated
Preferred Stocks Unrealized Unrealized Fair
As of December 31, 2025 Cost Gains Losses Value
Preferred stocks - unaffiliated $ 1,889,237 $ - $ (38,349) $ 1,850,888
Total preferred stocks $ 1,889,237 $ - $ (38,349) $ 1,850,888
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TALCOTT RESOLUTION LIFE AND ANNUITY INSURANCE COMPANY
NOTES TO STATUTORY-BASIS FINANCIAL STATEMENTS
YEARS ENDED DECEMBER 31, 2025, 2024 AND 2023


Gross Gross Estimated
Bonds, Cash Equivalents and Short-Term Investments Statement Unrealized Unrealized Fair
As of December 31, 2024 Value Gains Losses Value
U.S. government and government agencies and authorities:
Guaranteed and sponsored - excluding asset-backed $ 517,740,761 $ - $ (186,167,506) $ 331,573,255
Guaranteed and sponsored - asset-backed 56,484,451 1,041,075 (7,077,378) 50,448,148
States, municipalities and political subdivisions 100,108,529 460,230 (8,457,318) 92,111,441
International governments 30,054,346 42,288 (1,155,857) 28,940,777
All other corporate - excluding asset-backed 1,763,091,651 20,450,410 (135,712,848) 1,647,829,213
All other corporate - asset-backed 964,909,426 5,794,975 (35,403,888) 935,300,513
Hybrid securities 53,583,374 1,032,880 (1,186,778) 53,429,476
Cash equivalents and short-term investments 129,396,479 29 - 129,396,508
Cash equivalents and short-term investments affiliated 440,000,000 - - 440,000,000
Total bonds, cash equivalents and short-term investments $ 4,055,369,017 $ 28,821,887 $ (375,161,573) $ 3,709,029,331
Gross Gross Estimated
Common Stocks Unrealized Unrealized Fair
As of December 31, 2024 Cost Gains Losses Value
Common stocks - unaffiliated $ 9,204,642 $ 1,327,035 $ 10,531,677
Common stocks - affiliated 7,300,225 1,085,317 8,385,542
Total common stocks $ 16,504,867 $ 2,412,352 $ - $ 18,917,219
Gross Gross Estimated
Preferred Stocks Unrealized Unrealized Fair
As of December 31, 2024 Cost Gains Losses Value
Preferred stocks - unaffiliated $ 22,450,000 $ 921,688 $ 21,528,312
Total preferred stocks $ 22,450,000 $ - $ 921,688 $ 21,528,312

The statement value and estimated fair value of bonds, cash equivalents and short-term investments at December 31, 2025 by expected maturity year are shown below. Expected maturities may differ from contractual maturities due to call or prepayment provisions. Asset-backed securities ("ABS"), including mortgage-backed securities and collateralized mortgage obligations are distributed to maturity year based on the Company's estimate of the rate of future prepayments of principal over the remaining lives of the securities. These estimates are developed using prepayment speeds provided in broker consensus data. Such estimates are derived from prepayment speeds experienced at the interest rate levels projected for the applicable underlying collateral. Actual prepayment experience may vary from these estimates.

Statement Estimated
Maturity Value Fair Value
Due in one year or less $ 221,452,611 $ 217,411,039
Due after one year through five years 565,031,623 556,431,778
Due after five years through ten years 624,468,132 620,997,662
Due after ten years 1,582,956,104 1,345,699,679
Total $ 2,993,908,470 $ 2,740,540,158

At December 31, 2025 and 2024, securities with a statement value of $4,868,203 and $4,862,867 respectively, were on deposit with government agencies as required by law in various jurisdictions in which the Company conducts business.
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TALCOTT RESOLUTION LIFE AND ANNUITY INSURANCE COMPANY
NOTES TO STATUTORY-BASIS FINANCIAL STATEMENTS
YEARS ENDED DECEMBER 31, 2025, 2024 AND 2023


H. Mortgage Loans on Real Estate

The Company had a maximum and minimum lending rate of 8.22% and 7.02% for loans during 2025 and had a maximum and minimum lending rate of 8.45% and 7.80% for loans during 2024. During 2025 and 2024, the Company did not reduce interest rates on any outstanding mortgage loans on real estate. For loans held as of December 31, 2025 and 2024, the highest loan to value percentage of any one loan at the time of loan origination, exclusive of insured, guaranteed, purchase money mortgages or construction loans was 76.19% and 76.19%, respectively. There were no taxes, assessments or amounts advanced and not included in the mortgage loan total. As of December 31, 2025 and 2024, the Company did not hold mortgages with interest more than 180 days past due. As of December 31, 2025 and 2024, there were immaterial amounts of impaired loans and immaterial related allowances for credit losses, and the interest income recognized during the period the loans were impaired was also immaterial.

I. Restructured Debt in which the Company is a Creditor

The Company had no restructured commercial mortgage loan during the year ended December 31, 2025. The Company had one restructured commercial mortgage loan during the year ended December 31, 2024. The loan had an extension on the maturity date and no loss was incurred.

J. Joint Ventures, Partnerships and Limited Liability Companies

The Company has no investments in joint ventures, partnerships or limited liability companies that exceed 10% of admitted assets. The Company recognized OTTI of $2,619,208, $1,769,708 and $586,972 for the years ended December 31, 2025, 2024, and 2023, respectively, on certain limited partnerships. The partnerships were impaired because their cost basis sustained a decline in value that the Company determined to be other-than-temporary. The OTTI were determined as the difference between the fair value from the partnership financial statements and the carrying value of the investments based on the equity method of accounting.

K. Repurchase Agreements and Other Collateral Transactions

From time to time, the Company enters into repurchase agreements to manage liquidity or to earn incremental spread income. A repurchase agreement is a transaction in which one party (transferor) agrees to sell securities to another party (transferee) in return for cash (or securities), with a simultaneous agreement to repurchase the same securities at a specified price at a later date. A dollar roll is a type of repurchase transaction where a mortgage-backed security is sold with an agreement to repurchase substantially the same security at a specified time in the future. These transactions generally have a contractual maturity of 90 days or less. Therefore, the carrying amounts of these instruments approximate fair value.

Under repurchase agreements, the Company transfers collateral of U.S. government, government agency and corporate securities and receives cash. For the repurchase agreements, the Company obtains cash in an amount equal to at least 95% of the fair value of the securities transferred. The agreements require additional collateral to be transferred when necessary and provide the counterparty the right to sell or re-pledge the securities transferred. The cash received from the repurchase program is typically invested in short-term investments or bonds and is reported as an asset on the Company's Statements of Admitted Assets, Liabilities and Capital and Surplus. Repurchase agreements include master netting provisions that provide both counterparties the right to offset claims and apply securities held by them with respect of their obligations in the event of default. The Company accounts for the repurchase agreements as collateralized borrowings. The securities transferred under repurchase agreements are included in bonds, with the obligation to repurchase those securities recorded in other liabilities in the Statements of Admitted Assets, Liabilities and Capital and Surplus. As of December 31, 2025, the fair value and amortized cost of the securities transferred were $115,952,027 and $125,761,411 respectively, with maturities greater than 3 years. The liability to repurchase was $120,684,019 with a contractual maturity less than one year as of December 31, 2025. The securities acquired from the use of the collateral in connection with the repurchase agreement transactions were short-term investments with amortized cost approximating fair value of $120,684,019 with a maturity date less than 360 as of December 31, 2025. As of December 31, 2024, the fair value and amortized cost of the securities transferred were $180,439,066 and $201,346,907 respectively, with maturities greater than 3 years. The corresponding liability to repurchase was $171,899,921 with a contractual maturity less than one year as of December 31, 2024. The securities acquired from the use of the collateral in connection with the repurchase agreement transactions were short-term investments with amortized cost approximating fair value of $171,899,921 with a maturity date less than 360 as of December 31, 2024.

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TALCOTT RESOLUTION LIFE AND ANNUITY INSURANCE COMPANY
NOTES TO STATUTORY-BASIS FINANCIAL STATEMENTS
YEARS ENDED DECEMBER 31, 2025, 2024 AND 2023


The Company also may enter into reverse repurchase agreements where the Company purchases securities and simultaneously agrees to resell the same or substantially the same securities. The agreements require additional collateral to be transferred to the Company when necessary and the Company has the right to sell or re-pledge the securities received. The agreements have a contractual maturity of one year or less, and are accounted for as collateralized financing. The receivable for reverse repurchase agreements, included within Short-term investments on the Company's Statements of Admitted Assets, Liabilities and Capital and Surplus, as of December 31, 2025, 2024 and 2023, was $0, as the Company did not participate in reverse repurchase agreements during 2025, 2024 and 2023.

Reinvested proceeds from repurchase agreements transactions consist of short-term, high quality investments and U.S. government and government agency securities. These can be sold and used to meet collateral calls in a stress scenario. In addition, the liquidity resources of most of its general account investment portfolio are available to meet any potential cash demand when securities are returned to the Company. The potential impacts of repurchase agreements on the Company's liquidity and capital position are stress tested monthly, under Talcott's Liquidity Risk Policy.

The Company also enters into various collateral arrangements in connection with its derivative instruments, which require both the pledging and accepting of collateral. As of December 31, 2025 and 2024, securities pledged of $48,435,600 and $118,943,190, respectively, were included in Bonds and Cash, cash equivalents and short-term investments, on the Statements of Admitted Assets, Liabilities and Capital and Surplus. The counterparties have the right to sell or re-pledge these securities. The Company also pledged cash collateral associated with derivative instruments with a statement value of $39,235,183 and $65,092,411, respectively, as of December 31, 2025 and 2024, included in Other invested assets, on the Statements of Admitted Assets, Liabilities and Capital and Surplus.

As of December 31, 2025 and 2024, the Company accepted cash collateral associated with derivative instruments with a statement value of $3,039,950 and $6,547,000, respectively, which was invested and recorded in the Statements of Admitted Assets, Liabilities and Capital and Surplus in Bonds and Cash, cash equivalents and short-term investments with a corresponding amount recorded in Collateral on derivatives reported in Liabilities. The Company also accepted securities collateral as of December 31, 2025 and 2024 of $2,604,300 and $0, respectively, of which the Company has the ability to sell or repledge. As of December 31, 2025 and 2024, the Company did not repledge securities and did not sell any securities collateral. In addition, as of December 31, 2025 and 2024, noncash collateral accepted was held in separate custodial accounts and was not included in the Company's Statements of Admitted Assets, Liabilities and Capital and Surplus.

L. Security Unrealized Loss Aging

The Company has a security monitoring process overseen by a committee of investment and accounting professionals that, on a quarterly basis, identifies securities in an unrealized loss position that could potentially be other-than-temporarily impaired. For further discussion regarding the Company's OTTI policy, see Note 2. Due to the issuers' continued satisfaction of the securities' obligations in accordance with their contractual terms and the expectation that they will continue to do so, as well as the evaluation of the fundamentals of the issuers' financial condition and other objective evidence, the Company believes that the prices of the securities in the sectors identified in the tables below were temporarily depressed as of December 31, 2025 and 2024.
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TALCOTT RESOLUTION LIFE AND ANNUITY INSURANCE COMPANY
NOTES TO STATUTORY-BASIS FINANCIAL STATEMENTS
YEARS ENDED DECEMBER 31, 2025, 2024 AND 2023



The following table presents amortized cost or statement value, fair value, and unrealized losses for the Company's bond and equity securities, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position as of December 31, 2025 and 2024:

December 31, 2025 Less Than 12 Months 12 Months or More Total
Amortized Unrealized Amortized Unrealized Amortized Unrealized
(Amounts in thousands) Cost Fair Value Losses Cost Fair Value Losses Cost Fair Value Losses
U.S. government and government agencies & authorities:
Guaranteed & sponsored - excluding asset-backed $ 21,997 $ 21,553 $ (444) $ 520,393 $ 332,466 $ (187,927) $ 542,390 $ 354,019 $ (188,371)
Guaranteed & sponsored - asset-backed 2,942 2,714 (228) 37,510 34,351 (3,159) 40,452 37,065 (3,387)
States, municipalities & political subdivisions 4,462 4,284 (178) 44,394 38,192 (6,202) 48,856 42,476 (6,380)
International governments 7,490 7,486 (4) 17,131 16,943 (188) 24,621 24,429 (192)
All other corporate - excluding asset-backed 149,368 144,487 (4,881) 768,298 674,001 (94,297) 917,666 818,488 (99,178)
All other corporate - asset-backed 97,938 97,435 (503) 250,808 231,137 (19,671) 348,746 328,572 (20,174)
Total fixed maturities 284,197 277,959 (6,238) 1,638,534 1,327,090 (311,444) 1,922,731 1,605,049 (317,682)
Common stock-unaffiliated - 377 347 (30) 377 347 (30)
Total stocks - - - 377 347 (30) 377 347 (30)
Total securities $ 284,197 $ 277,959 $ (6,238) $ 1,638,911 $ 1,327,437 $ (311,474) $ 1,923,108 $ 1,605,396 $ (317,712)
December 31, 2024 Less Than 12 Months 12 Months or More Total
Amortized Unrealized Amortized Unrealized Amortized Unrealized
(Amounts in thousands) Cost Fair Value Losses Cost Fair Value Losses Cost Fair Value Losses
U.S. government and government agencies & authorities:
Guaranteed & sponsored - excluding asset-backed $ 1,617 $ 1,511 $ (106) $ 516,123 $ 330,062 $ (186,061) $ 517,740 $ 331,573 $ (186,167)
Guaranteed & sponsored - asset-backed 9,130 8,295 (835) 42,599 36,357 (6,242) 51,729 44,652 (7,077)
States, municipalities & political subdivisions 26,203 25,827 (376) 50,835 42,754 (8,081) 77,038 68,581 (8,457)
International governments 2,292 2,255 (38) 25,632 24,514 (1,118) 27,924 26,769 (1,155)
All other corporate - excluding asset-backed 357,837 345,099 (12,739) 903,228 780,254 (122,974) 1,261,065 1,125,353 (135,712)
All other corporate - asset-backed 106,185 104,325 (1,860) 412,354 378,810 (33,544) 518,539 483,135 (35,404)
Hybrid securities 1,147 1,142 (5) 16,481 15,299 (1,182) 17,628 16,441 (1,187)
Total fixed maturities 504,411 488,454 (15,957) 1,967,252 1,608,050 (359,202) 2,471,663 2,096,504 (375,159)
Common stock-unaffiliated - - - 361 326 (35) 361 326 (35)
Preferred stock - unaffiliated - - - 22,450 21,528 (922) 22,450 21,528 (922)
Total stocks - - - 22,811 21,854 (957) 22,811 21,854 (957)
Total securities $ 504,411 $ 488,454 $ (15,957) $ 1,990,063 $ 1,629,904 $ (360,159) $ 2,494,474 $ 2,118,358 $ (376,118)

As of December 31, 2025, fixed maturities, comprised of 502 securities, accounted for approximately 100% of the Company's total unrealized loss amount. The securities were primarily related to US. government securities, corporate securities concentrated in the utility, industrial & financial services sector, and mortgage-backed securities, which were depressed primarily due to an increase in interest rates and/or widening of credit spreads since the securities were purchased. As of December 31, 2025, 87% of the securities in an unrealized loss position were depressed less than 20% of amortized cost. The increase in fixed maturities' unrealized losses during 2025 was primarily attributable to increase in interest rates and widening spreads on higher yielding corporate securities and asset-back securities.

Most of the securities depressed for twelve months or more are primarily related to US. government agency securities, mortgage-backed securities, and corporate securities concentrated in the financial & industrial sector, which were depressed primarily due to an increase in interest rates and/or widening of credit spreads since the securities were purchased. As of December 31, 2025, the Company does not have an intention to sell any securities in an unrealized loss position, and for loan-backed and structured securities, has the intent and ability to hold these securities until values recover.

As of December 31, 2024, fixed maturities, comprised of 667 securities, accounted for approximately 99% of the Company's total unrealized loss amount. The securities were primarily related to US. government securities, corporate securities
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TALCOTT RESOLUTION LIFE AND ANNUITY INSURANCE COMPANY
NOTES TO STATUTORY-BASIS FINANCIAL STATEMENTS
YEARS ENDED DECEMBER 31, 2025, 2024 AND 2023


concentrated in the utility, industrial & financial services sector, and mortgage-backed securities, which were depressed primarily due to an increase in interest rates and/or widening of credit spreads since the securities were purchased. As of December 31, 2024, 88% of the securities in an unrealized loss position were depressed less than 20% of amortized cost. The increase in fixed maturities' unrealized losses during 2024 was primarily attributable to increase in interest rates and widening spreads on higher yielding corporate securities and asset-back securities.

M. Asset Backed Securities OTTI

For the years ended December 31, 2025, 2024 and 2023, the Company did not recognize losses for OTTI on loan-backed and structured securities due to the intent to sell impaired securities or due to the inability or lack of intent to retain an investment in a security for a period of time sufficient to recover the amortized cost basis.

N. 5GI Securities

A 5GI is assigned by the NAIC Securities Valuation Office ("SVO") to certain obligations when an insurer certifies that the documentation necessary to permit a full credit analysis of a security does not exist, that the issuer or obligator is current on all contracted interest and principal pay downs and that the insurer has the expectation of ultimate payment of all contracted payments. The 5GI securities for the Company are immaterial for the years ended December 31, 2025 and 2024.

4. Fair Value Measurements

Fair value is determined based on the "exit price" notion which is defined as the price that would be received to sell an asset or paid to transfer a liability in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants. Financial instruments carried at fair value in the Company's financial statements include certain bonds, stocks, derivatives, and Separate Account assets.

The Company utilizes the services of Hartford Investment Management Company ("HIMCO"), a third-party investment manager, and Sixth Street Insurance Solutions, L.P., an affiliated investment manager, that are registered investment advisers under the Investment Advisers Act of 1940. The Company's Investment Valuation Committee ("IVC"), a working group chaired by the Chief Financial Officer ("CFO") of the Talcott Financial Group Investments, LLC subsidiaries, oversees the investment activities of these investment managers and directs other investments to maximize economic value and generate the returns necessary to support the Company's various product obligations, within internally established objectives, guidelines and risk tolerances. The portfolio objectives and guidelines are developed, by the Company, based upon the asset/liability profile, including duration, convexity and other characteristics within specified risk tolerances. The risk tolerances considered include, but are not limited to, asset sector, credit issuer allocation limits, and maximum portfolio limits for below investment grade holdings. The Company attempts to minimize adverse impacts to the investment portfolio and the Company's results of operations from changes in economic conditions through asset diversification, asset allocation limits, and asset/liability duration matching and the use of derivatives. The following section applies the fair value hierarchy and disclosure requirements for the Company's Separate Account assets, and categorizes the inputs in the valuation techniques used to measure fair value into three broad Levels (Level 1, 2, or 3):

Level 1 Unadjusted quoted prices for identical assets or liabilities in active markets that the Company has the ability to access at the measurement date.

Level 2 Observable inputs, other than quoted prices included in Level 1, for the asset or liability, or prices for similar assets and liabilities.

Level 3 Valuations that are derived from techniques in which one or more of the significant inputs are unobservable (including assumptions about risk). Because Level 3 fair values, by their nature, contain one or more significant unobservable inputs as there is little or no observable market for these assets and liabilities, considerable judgment is used to determine the Level 3 fair values. Level 3 fair values represent the Company's best estimate of amounts that could be realized in a current market exchange absent actual market exchanges.

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TALCOTT RESOLUTION LIFE AND ANNUITY INSURANCE COMPANY
NOTES TO STATUTORY-BASIS FINANCIAL STATEMENTS
YEARS ENDED DECEMBER 31, 2025, 2024 AND 2023


In many situations, inputs used to measure the fair value of an asset or liability position may fall into different levels of the fair value hierarchy. In these situations, the Company's investment manager will determine the level in which the fair value falls based upon the lowest level input that is significant to the determination of the fair value. In most cases, both observable (e.g., changes in interest rates) and unobservable (e.g. changes in risk assumptions) inputs are used in determination of fair values that the Company's investment manager has classified within Level 3. Consequently, these values and the related gains and losses are based upon both observable and unobservable inputs. The Company's bonds included in Level 3 are classified as such because these securities are primarily within illiquid markets and/or priced by independent brokers.
The following table presents assets and (liabilities) carried at fair value by hierarchy level:

As of December 31, 2025
(Amounts in thousands)
Quoted Prices in Active Markets for Identical Assets
(Level 1)
Significant Observable Inputs
(Level 2)
Significant Unobservable Inputs
(Level 3)
Net Asset Value (NAV)
Total
a. Assets accounted for at fair value
Common stocks - unaffiliated $ 6,884 $ - $ 3,002 $ - 9,886
Preferred stocks - unaffiliated - 1,851 - - 1,851
Cash equivalents 121,559 - - - 121,559
Total bonds and stocks 128,443 1,851 3,002 - 133,296
Derivative assets
Equity derivatives - 23 - - 23
Macro hedge program - 48,208 - - 48,208
Total derivative assets - 48,231 - - 48,231
Separate Account assets [1] 24,098,084 - - - 24,098,084
Total assets accounted for at fair value $ 24,226,527 $ 50,082 $ 3,002 $ - $ 24,279,611
b. Liabilities accounted for at fair value
Derivative liabilities
Macro hedge program $ - $ 3,791 $ - $ - $ 3,791
Total liabilities accounted for at fair value $ - $ 3,791 $ - $ - $ 3,791
[1]Excludes approximately $9 million of investment sales receivable net of investment purchases payable that are not subject to SSAP No. 100 (Fair Value Measurements.)

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TALCOTT RESOLUTION LIFE AND ANNUITY INSURANCE COMPANY
NOTES TO STATUTORY-BASIS FINANCIAL STATEMENTS
YEARS ENDED DECEMBER 31, 2025, 2024 AND 2023


As of December 31, 2024
(Amounts in thousands)
Quoted Prices in Active Markets for Identical Assets
(Level 1)
Significant Observable Inputs
(Level 2)
Significant Unobservable Inputs
(Level 3)
Net Asset Value (NAV)
Total
a. Assets accounted for at fair value
Common stocks - unaffiliated $ 7,089 $ - $ 3,443 $ - $ 10,532
Preferred stocks - unaffiliated - 21,528 - - 21,528
Cash equivalents 129,308 - - - 129,308
Total bonds and stocks 136,397 21,528 3,443 - 161,368
Derivative assets
Interest rate derivatives
- - - - -
Macro hedge program
- 3,167 97,110 - 100,277
Total derivative assets - 3,167 97,110 100,277
Separate Account assets [1] 23,798,019 - - - $ 23,798,019
Total assets accounted for at fair value $ 23,934,416 $ 24,695 $ 100,553 $ - $ 24,059,664
b. Liabilities accounted for at fair value
Derivative liabilities
Interest rate derivatives
$ - $ - $ - $ - $ -
Macro hedge program
- (18,381) - (18,381)
Total liabilities accounted for at fair value $ - $ - $ (18,381) $ (18,381)
[1] Excludes approximately $6 million of investment sales receivable net of investment purchases payable that are not subject to SSAP No. 100 (Fair Value Measurements.)

Valuation Techniques, Procedures and Controls

The Company determines the fair values of certain financial assets and liabilities based on quoted market prices where available and where prices represent reasonable estimates of fair value. The Company also determines fair values based on future cash flows discounted at the appropriate current market rate. Fair values reflect adjustments for counterparty credit quality, the Company's default spreads, liquidity and, where appropriate, risk margins on unobservable parameters. The following is a discussion of the methodologies used to determine fair values for the financial instruments listed in the preceding tables.

The fair value process is monitored by the respective Valuation Committees of the Company's investment managers, which are comprised of senior management that meets at least quarterly. The purpose of the committee is to oversee the pricing policy and procedures by ensuring objective and reliable valuation practices and pricing of financial instruments as well as addressing valuation issues and approving changes to valuation methodologies and pricing sources.

In addition, the IVC is responsible for the approval and monitoring of the valuation policy of the Company as well as the adjudication of any valuation disputes thereunder. The valuation policy addresses valuation of all financial instruments held in the general account and guaranteed separate accounts of the Company, including all derivative positions. The IVC meets regularly, and its members include a cross-functional group of senior management as well as various investment, accounting, finance, and risk management professionals.

The Company also has an enterprise-wide Operational Risk Management function with Enterprise Risk Management ("ERM") which is responsible for establishing, maintaining and communicating the framework, principles and guidelines of the Company's operational risk management program. The Enterprise Model Oversight Working Group ensures compliance with the ERM framework by providing an independent review of the suitability, characteristics and reliability of model inputs as well as an analysis of significant changes to current models.

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TALCOTT RESOLUTION LIFE AND ANNUITY INSURANCE COMPANY
NOTES TO STATUTORY-BASIS FINANCIAL STATEMENTS
YEARS ENDED DECEMBER 31, 2025, 2024 AND 2023


Bonds, Asset Backed Securities and Stocks

The fair values of bonds, asset backed securities and stocks in an active and orderly market (e.g., not distressed or forced liquidation) are determined by the Company's investment managers using a "waterfall" approach utilizing the following pricing sources: quoted prices for identical assets or liabilities, prices from third-party pricing services, independent broker quotations, or internal matrix pricing processes. Typical inputs used by these pricing sources include, but are not limited to, benchmark yields, reported trades, broker/dealer quotes, issuer spreads, benchmark securities, bids, offers, and/or estimated cash flows, prepayment speeds, and default rates. Most bonds do not trade daily. Based on the typical trading volumes and the lack of quoted market prices for bonds, third-party pricing services utilize matrix pricing to derive security prices. Matrix pricing relies on securities' relationships to other benchmark quoted securities, which trade more frequently. Pricing services utilize recently reported trades of identical or similar securities making adjustments through the reporting date based on the preceding outlined available market observable information. If there are no recently reported trades, the third-party pricing services may develop a security price using expected future cash flows based upon collateral performance and discounted at an estimated market rate. Both matrix pricing and discounted cash flow techniques develop prices by factoring in the time value for cash flows and risk, including liquidity and credit.

Prices from third-party pricing services may be unavailable for securities that are rarely traded or are traded only in privately negotiated transactions. As a result, certain securities are priced via independent broker quotations which utilize inputs that may be difficult to corroborate with observable market based data. Additionally, the majority of these independent broker quotations are non-binding.

The Company's investment managers utilize an internally developed matrix pricing process for private placement securities for which the Company is unable to obtain a price from a third-party pricing service. The process is similar to the third-party pricing services. The Company's investment managers develop credit spreads each month using market based data for public securities adjusted for credit spread differentials between public and private securities which are obtained from a survey of multiple private placement brokers. The credit spreads determined through this survey approach are based upon the issuer's financial strength and term to maturity, utilizing independent public security index and trade information and adjusting for the non-public nature of the securities. Credit spreads combined with risk-free rates are applied to contractual cash flows to develop a price.

The Company's investment managers perform ongoing analyses of the prices and credit spreads received from third parties to ensure that the prices represent a reasonable estimate of the fair value. In addition, the Company's investment managers ensure that prices received from independent brokers represent a reasonable estimate of fair value through the use of internal and external cash flow models utilizing spreads, and when available, market indices. As a result of these analyses, if the Company's investment managers determine that there is a more appropriate fair value based upon the available market data, the price received from the third party is adjusted accordingly and approved by the IVC of the Company's investment managers.

The Company's investment managers conduct other specific monitoring controls around pricing. Daily, weekly and monthly analyses identify price changes over pre-determined thresholds for bonds and equity securities. Monthly analyses identify prices that have not changed, and missing prices. Also on a monthly basis, a second source validation is performed on most sectors. Analyses are conducted by a dedicated pricing unit that follows up with trading and investment sector professionals and challenges prices with vendors when the estimated assumptions used differs from what the Company's investment managers feel a market participant would use. Examples of other procedures performed include, but are not limited to, initial and ongoing review of third-party pricing services' methodologies, review of pricing statistics and trends and back testing recent trades.

The Company's investment managers have analyzed the third-party pricing services' valuation methodologies and related inputs, and has also evaluated the various types of securities in its investment portfolio to determine an appropriate fair value hierarchy level based upon trading activity and the observability of market inputs. Most prices provided by third-party pricing services are classified into Level 2 because the inputs used in pricing the securities are observable. Due to the lack of transparency in the process that brokers use to develop prices, most valuations that are based on brokers' prices are classified as Level 3. Some valuations may be classified as Level 2 if the price can be corroborated with observable market data.

Derivative Instruments

Derivative instruments are fair valued using pricing valuation models for OTC derivatives that utilize independent market data inputs, quoted market prices for exchange-traded derivatives and OTC-cleared derivatives, or independent broker quotations.

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TALCOTT RESOLUTION LIFE AND ANNUITY INSURANCE COMPANY
NOTES TO STATUTORY-BASIS FINANCIAL STATEMENTS
YEARS ENDED DECEMBER 31, 2025, 2024 AND 2023


The Company performs ongoing analysis of the valuations, assumptions, and methodologies used to ensure that the prices represent a reasonable estimate of the fair value. The Company performs various controls on derivative valuations which include both quantitative and qualitative analyses. Analyses are conducted by a cross-functional group of investment, actuarial, risk and information technology professionals that analyze impacts of changes in the market environment and investigate variances. There is a monthly analysis to identify market value changes greater than pre-defined thresholds, stale prices, missing prices and zero prices. Also on a monthly basis, a second source validation, typically to broker quotations, is performed for certain of the more complex derivatives and all new deals during the month. A model validation review is performed on any new models, which typically includes detailed documentation and validation to a second source. As to certain derivatives that are held by the Company as well as its investment manager's other clients, the Company's investment manager performs ongoing analysis of the valuations, assumptions, and methodologies used to ensure that the prices represent a reasonable estimate of the fair value. On a daily basis, the Company's derivatives collateral agent compares market valuations to counterparty valuations for all OTC derivatives held by the Company for collateral purposes.

The Company utilizes derivative instruments to manage the risk associated with certain assets and liabilities. However, the derivative instrument may not be classified with the same fair value hierarchy level as the associated assets and liabilities. Therefore the realized and unrealized gains and losses on derivatives reported in Level 3 may not reflect the offsetting impact of the realized and unrealized gains and losses of the associated assets and liabilities.

Valuation Inputs for Investments

For Level 1 investments, which are comprised of exchange traded securities and open-ended mutual funds, valuations are based on observable inputs that reflect quoted prices for identical assets in active markets that the Company has the ability to access at the measurement date.

For the Company's Level 2 and 3 bonds and stocks, typical inputs used by pricing techniques include, but are not limited to, benchmark yields, reported trades, broker/dealer quotes, issuer spreads, benchmark securities, bids, offers, and/or estimated cash flows, prepayment speeds, and default rates. Derivative instruments are valued using mid-market inputs that are predominantly observable in the market.

Descriptions of additional inputs used in the Company's Level 2 and Level 3 measurements are included in the following discussion:

Level 2 The fair values of most of the Company's Level 2 investments are determined by management after considering prices received from third-party pricing services. These investments include mostly bonds and preferred stocks.

Asset-backed securities, collateralized loan obligations, commercial and residential mortgage-backed securities - Primary inputs also include monthly payment information, collateral performance, which varies by vintage year and includes delinquency rates, collateral valuation loss severity rates, collateral refinancing assumptions, and credit default swap indices. Commercial and residential mortgage-backed securities prices also include estimates of the rate of future principal prepayments over the remaining life of the securities. Such estimates are derived based on the characteristics of the underlying structure and prepayment speeds previously experienced at the interest rate levels projected for the underlying collateral.

Foreign government/government agencies - Primary inputs also include observations of credit default swap curves related to the issuer and political events in emerging market economies.

Interest rate derivatives - Primary input is the swap yield curve.

Level 3 Most of the Company's securities classified as Level 3 include less liquid securities such as lower quality asset-backed securities, commercial and residential mortgage-backed securities primarily backed by sub-prime loans. Also included in Level 3 are securities valued based on broker prices or broker spreads, without adjustments. Primary inputs for non-broker priced investments, including structured securities, are consistent with the typical inputs used in Level 2 measurements noted above, but are Level 3 due to their less liquid markets. Additionally, certain long-dated securities are priced based on third-party pricing services, including municipal securities, foreign government/government agency securities, and bank loans. Primary inputs for these long-dated securities are consistent with the typical inputs used in the preceding noted Level 1 and Level 2 measurements, but include benchmark interest rate or credit spread assumptions that are not observable in the marketplace. Also included in Level 3 are certain derivative instruments that
34
TALCOTT RESOLUTION LIFE AND ANNUITY INSURANCE COMPANY
NOTES TO STATUTORY-BASIS FINANCIAL STATEMENTS
YEARS ENDED DECEMBER 31, 2025, 2024 AND 2023


either have significant unobservable inputs or are valued based on broker quotations. Significant inputs for these derivative contracts primarily include the typical inputs used in the Level 1 and Level 2 measurements noted above, but also may include equity and interest rate volatility and swap yield curves beyond observable limits.

Separate Account assets

Non-guaranteed Separate Account assets are primarily invested in mutual funds and are valued by the underlying mutual funds in accordance to their valuation policies and procedures.

Significant Unobservable Inputs for Level 3 Assets Measured at Fair Values

The following tables present information about significant unobservable inputs used in Level 3 assets measured at fair value. The tables exclude corporate securities for which fair values are predominantly based on broker quotations.

The following tables present information about significant unobservable inputs used in Level 3 assets measured at fair value.
(Amounts in thousands) December 31, 2025
Assets accounted for at fair value on a recurring basis [1] Fair Value Predominant Valuation Method Significant Unobservable Input Minimum [6] Maximum [6] Weighted Average [2] [6] Impact of Increase in Input on Fair Value [3]
CMBS [4] $ 7,250 Discounted cash flows Spread 638 bps 638 bps 638 bps Decrease
Corporate [5] 237,449 Discounted cash flows Spread 82 bps 619 bps 148 bps Decrease
ABS 13,767 Discounted cash flows Spread 72 bps 255 bps 47 bps Decrease

[1] Includes both General Account and Separate Account investments held.
[2] The weighted average is determined based on the fair value of the securities.
[3] Conversely, the impact of a decrease in input would have the opposite impact to the fair value as that presented in the table above.
[4] Excludes securities for which the Company bases fair value on broker quotations.
[5] Excludes securities for which the Company bases fair value on broker quotations; however, included are broker priced lower-rated private placement securities for which the Company receives spread and yield information to corroborate the fair value.
[6] Basis points (bps).

(Amounts in thousands) December 31, 2024
Free Standing Derivatives Fair Value Predominant Valuation Method Significant Unobservable Input Minimum Maximum Impact of Increase in Input on Fair Value [1]
Macro hedge program
Interest rate swaptions $ 8,998 Option model Interest rate volatility 14% 37% Increase
Equity options [2] $ (38,711) Option model Equity volatility 0.8% 0.8% Increase

[1] The impact of a decrease in input would have the opposite impact to the fair value as that presented in the table. Changes are based on long positions, unless otherwise noted. Changes in fair value will be inversely impacted for short positions.
[2] Level 3 macro hedge derivatives excludes those for which the Company bases fair value on broker quotations as noted in the following discussion.

35
TALCOTT RESOLUTION LIFE AND ANNUITY INSURANCE COMPANY
NOTES TO STATUTORY-BASIS FINANCIAL STATEMENTS
YEARS ENDED DECEMBER 31, 2025, 2024 AND 2023


Assets and Liabilities Measured at Fair Value Using Significant Unobservable Inputs (Level 3)

The tables below provides a roll-forward of financial instruments measured at fair value using significant unobservable inputs (Level 3) for the years ended December 31, 2025 and 2024:
Total Realized/
Unrealized Gains
Fair Value Transfers Transfers (Losses) Included in: Fair Value
as of into out of Net Purchases/ Sales/ as of
(Amounts in thousands) Jan. 1, 2025 Level 3 [2] Level 3 [2] Income [1] Surplus Increases Decreases Settlements Dec. 31, 2025
Assets
Common stocks - unaffiliated $ 3,443 $ - $ - $ - $ - $ - $ (441) $ - $ 3,002
Total bonds and stocks 3,443 - - - - - (441) - 3,002
Derivatives
Macro hedge program
78,731 - (78,731) - - - - - -
Total derivatives [3] 78,731 - (78,731) - - - - - -
Total assets $ 82,174 $ - $ (78,731) $ - $ - $ - $ (441) $ - $ 3,002
Total liabilities $ - $ - $ - $ - $ - $ - $ - $ - $ -

[1]All amounts in this column are reported in net realized capital gains (losses). All amounts are before income taxes.
[2]Transfers in and/or (out) of Level 3 are primarily attributable to changes in the availability of market observable information and changes to the bond and stock carrying value based on the lower of cost and market requirement.
[3]Derivative instruments are reported in this table on a net basis for asset/(liability) positions.
Total Realized/
Unrealized Gains
Fair Value Transfers Transfers (Losses) Included in: Fair Value
as of into out of Net Purchases/ Sales/ as of
(Amounts in thousands) Jan. 1, 2024 Level 3 [2] Level 3 [2] Income [1] Surplus Increases Decreases Settlements Dec. 31, 2024
Assets
Common stocks - unaffiliated $ 3,443 $ - $ - $ - $ - $ - $ - $ - $ 3,443
Total bonds and stocks 3,443 - - - - - - - 3,443
Derivatives
Macro hedge program 94,133 - - - (124,998) 73,922 - 35,674 78,731
Total derivatives [3] 94,133 - - - (124,998) 73,922 - 35,674 78,731
Total assets $ 97,576 $ - $ - $ - $ (124,998) $ 73,922 $ - $ 35,674 $ 82,174
Total liabilities $ - $ - $ - $ - $ - $ - $ - $ - $ -

[1]All amounts in this column are reported in net realized capital gains (losses). All amounts are before income taxes.
[2]Transfers in and/or (out) of Level 3 are primarily attributable to changes in the availability of market observable information and changes to the bond and stock carrying value based on the lower of cost and market requirement.
[3]Derivative instruments are reported in this table on a net basis for asset/(liability) positions.

36
TALCOTT RESOLUTION LIFE AND ANNUITY INSURANCE COMPANY
NOTES TO STATUTORY-BASIS FINANCIAL STATEMENTS
YEARS ENDED DECEMBER 31, 2025, 2024 AND 2023



Fair Values for All Financial Instruments by Levels 1, 2 and 3

The tables below reflects the fair values and admitted values of all admitted assets and liabilities that are financial instruments excluding those accounted for under the equity method (subsidiaries, joint ventures and partnerships). The fair values are also categorized into the three-level fair value hierarchy.
(Amounts in thousands) December 31, 2025


Type of Financial Instrument
Aggregate Fair Value Admitted Value (Level 1) (Level 2) (Level 3) Net Asset Value (NAV) Not Practicable (Carrying Value)
Assets
Issuer credit obligations
$ 1,914,214 $ 2,170,245 $ - $ 1,653,329 $ 260,885 $ - $ -
Asset-backed securities - unaffiliated
795,113 815,717 - 747,465 47,648 - -
Asset-backed securities - affiliated
7,037 7,000 - 7,037 - -
Preferred stocks - unaffiliated 1,851 1,851 - 1,851 - -
Common stocks - unaffiliated 9,886 9,886 6,884 - 3,002 - -
Mortgage loans 543,971 577,795 - - 543,971 - -
Cash, cash equivalents and short-term investments - unaffiliated 195,555 195,555 195,555 - - - -
Cash, cash equivalents and short-term investments - affiliated - - - - - - -
Derivative related assets 48,671 48,297 - 48,671 - - -
Contract loans 86,986 86,986 - - 86,986 - -
Surplus debentures 33,928 35,324 - 33,928 - - -
Capital Notes 7,652 6,960 - 7,652 - - -
Debt securities without credit enhancement 11,673 11,673 - 4,423 7,250 - -
Residual tranches fixed income 10,229 9,438 - - 10,229 - -
Separate Account assets [1] 24,098,084 24,098,084 24,098,084 - - - -
Total assets $ 27,764,850 $ 28,074,811 $ 24,300,523 $ 2,504,356 $ 959,971 $ - $ -
Liabilities
Liability for deposit-type contracts $ (125,690) $ (125,690) $ - $ - $ (125,690) $ - $ -
Derivative related liabilities (58,057) $ (4,821) (58,057) - - -
Separate Account liabilities (24,098,084) (24,098,084) (24,098,084) - - - -
Total liabilities $ (24,281,831) $ (24,228,595) $ (24,098,084) $ (58,057) $ (125,690) $ - $ -
[1] Excludes approximately $9 million, at December 31, 2025, of investment sales receivable net of investment purchases payable that are not subject to SSAP No. 100.

37
TALCOTT RESOLUTION LIFE AND ANNUITY INSURANCE COMPANY
NOTES TO STATUTORY-BASIS FINANCIAL STATEMENTS
YEARS ENDED DECEMBER 31, 2025, 2024 AND 2023


(Amounts in thousands) December 31, 2024


Type of Financial Instrument
Aggregate Fair Value Admitted Value (Level 1) (Level 2) (Level 3) Net Asset Value(NAV) Not Practicable (Carrying Value)
Assets
Bonds - unaffiliated
$ 3,121,349 $ 3,467,973 $ - $ 2,625,021 $ 496,328 $ - $ -
Bonds - affiliated
18,284 18,000 - 18,284 - - -
Preferred stocks - unaffiliated 21,528 21,528 - 21,528 - - -
Common stocks - unaffiliated 10,532 10,532 7,089 - 3,443 - -
Mortgage loans 630,965 687,494 - - 630,965 - -
Cash, cash equivalents and short-term investments - unaffiliated 196,656 196,656 196,567 - 89 - -
Cash, cash equivalents and short-term investments - affiliated 440,000 440,000 - - 440,000 - -
Derivative related assets 101,853 101,755 - 4,653 97,102 - -
Contract loans 86,947 86,947 - - 86,947 - -
Surplus debentures 40,162 41,837 - 40,162 - - -
Separate Account assets [1] 23,798,019 23,798,019 23,798,019 - - - -
Total assets $ 28,466,295 $ 28,870,741 $ 24,001,675 $ 2,709,648 $ 1,754,874 $ - $ -
Liabilities
Liability for deposit-type contracts $ (143,313) $ (143,313) $ - $ - $ (143,313) $ - $ -
Derivative related liabilities (79,983) (18,431) - (59) (18,431) - -
Separate Account liabilities (23,798,019) (23,798,019) (23,798,019) - - - -
Total liabilities $ (24,021,315) $ (23,959,763) $ (23,798,019) $ (59) $ (161,744) $ - $ -

[1] Excludes approximately $6 million, at December 31, 2024, of investment sales receivable net of investment purchases payable that are not subject to SSAP No. 100.

The valuation methodologies used to determine the fair values of bonds, stocks and derivatives are described in the above Fair Value Measurements section of this note.

The amortized cost of cash, cash equivalents and short-term investments approximates fair value.

Fair values for mortgage loans on real estate were estimated using discounted cash flow calculations based on current lending rates for similar type loans. Current lending rates reflect changes in credit spreads and the remaining terms of the loans.

The carrying amounts of the liability for deposit-type contracts and Separate Account liabilities approximate their fair values.

The fair value of contract loans was determined using current loan coupon rates which reflect the current rates available under the contracts. As a result, the fair value approximates the carrying value of the contract loans.

At December 31, 2025 and 2024 the Company had no investments where it was not practicable to estimate fair value.

38
TALCOTT RESOLUTION LIFE AND ANNUITY INSURANCE COMPANY
NOTES TO STATUTORY-BASIS FINANCIAL STATEMENTS
YEARS ENDED DECEMBER 31, 2025, 2024 AND 2023


5. Income Taxes

A.The components of the net deferred tax asset/(deferred tax liability) ("DTA"/"(DTL)") at period end and the change in those components are as follows:

1 2025
Ordinary Capital Total
(a) Gross DTA $ 186,791,368 $ 706,889 $ 187,498,257
(b) Statutory valuation allowance adjustments - - -
(c) Adjusted gross DTA 186,791,368 706,889 187,498,257
(d) Deferred tax assets nonadmitted 60,622,824 - 60,622,824
(e) Subtotal net admitted deferred tax assets 126,168,544 706,889 126,875,433
(f) Deferred tax liabilities 34,144,132 29,189,468 63,333,600
(g) Net admitted deferred tax asset/(net deferred tax liability) $ 92,024,412 $ (28,482,579) $ 63,541,833

2 2025
Ordinary Capital Total
Admission Calculation Components SSAP No. 101 :
(a) Federal income taxes paid in prior years recoverable by carrybacks $ - $ - $ -
(b) Adjusted gross DTA expected to be realized 62,978,305 563,528 63,541,833
(1) DTAs expected to be realized after the balance sheet date 62,978,305 563,528 63,541,833
(2) DTAs allowed per limitation threshold XXX XXX 100,942,995
(c) DTAs offset against DTLs 63,190,239 143,361 63,333,600
(d) DTAs admitted as a result of application of SSAP No. 101 $ 126,168,544 $ 706,889 $ 126,875,433

3 (a) Ratio % used to determine recovery period and threshold limitation 876%
(b) Adjusted capital and surplus used to determine 2(b) thresholds 672,953,299
4 2025
Ordinary Capital
Impact of Tax Planning Strategies:
(a) Determination of adjusted gross DTA and net admitted DTA,
by tax character as a %.
(1) Adjusted gross DTAs amount from Note 5A1c $ 186,791,368 $ 706,889
(2) % of adjusted gross DTAs by tax character attributable to the impact of
planning strategies - % - %
(3) Net admitted adj. gross DTAs amount from Note 5A1e $ 126,168,544 $ 706,889
(4) % of net admitted adjusted gross DTAs by tax character admitted
because of the impact of planning strategies - % - %
(b) Do the tax planning strategies include the use of reinsurance? Yes ___ No _X_

1 2024
Ordinary Capital Total
(a) Gross DTA $ 173,772,013 $ 1,168,019 $ 174,940,032
(b) Statutory valuation allowance adjustments - - -
(c) Adjusted gross DTA 173,772,013 1,168,019 174,940,032
(d) Deferred tax assets nonadmitted 47,701,886 - 47,701,886
(e) Subtotal net admitted deferred tax assets 126,070,127 1,168,019 127,238,146
(f) Deferred tax liabilities 35,043,715 36,430,719 71,474,434
(g) Net admitted deferred tax asset/(net deferred tax liability) $ 91,026,412 $ (35,262,700) $ 55,763,712

39
TALCOTT RESOLUTION LIFE AND ANNUITY INSURANCE COMPANY
NOTES TO STATUTORY-BASIS FINANCIAL STATEMENTS
YEARS ENDED DECEMBER 31, 2025, 2024 AND 2023


2 2024
Ordinary Capital Total
Admission Calculation Components SSAP No. 101 :
(a) Federal income taxes paid in prior years recoverable by carrybacks $ - $ - $ -
(b) Adjusted gross DTA expected to be realized 54,747,910 1,015,802 55,763,712
(1) DTAs expected to be realized after the balance sheet date 54,747,910 1,015,802 55,763,712
(2) DTAs allowed per limitation threshold XXX XXX 85,630,275
(c) DTAs offset against DTLs 71,322,217 152,217 71,474,434
(d) DTAs admitted as a result of application of SSAP No. 101 $ 126,070,127 $ 1,168,019 $ 127,238,146

3 (a) Ratio % used to determine recovery period and threshold limitation 691%
(b) Adjusted capital and surplus used to determine 2(b) thresholds 570,868,502

4 2024
Ordinary Capital
Impact of Tax Planning Strategies:
(a) Determination of adjusted gross DTA and net admitted DTA,
by tax character as a %.
(1) Adjusted gross DTAs amount from Note 5A1c $ 173,772,013 $ 1,168,019
(2) % of adjusted gross DTAs by tax character attributable to the impact of
planning strategies - % - %
(3) Net admitted adj. gross DTAs amount from Note 5A1e $ 126,070,127 $ 1,168,019
(4) % of net admitted adjusted gross DTAs by tax character admitted
because of the impact of planning strategies 1 % - %
(b) Do the tax planning strategies include the use of reinsurance? Yes ___ No _X_

1 Change During 2025
Ordinary Capital Total
(a) Gross DTA $ 13,019,355 $ (461,130) $ 12,558,225
(b) Statutory valuation allowance adjustments - - -
(c) Adjusted gross DTA 13,019,355 (461,130) 12,558,225
(d) Deferred tax assets nonadmitted 12,920,938 - 12,920,938
(e) Subtotal net admitted deferred tax assets 98,417 (461,130) (362,713)
(f) Deferred tax liabilities (899,583) (7,241,251) (8,140,834)
(g) Net admitted deferred tax asset/(net deferred tax liability) $ 998,000 $ 6,780,121 $ 7,778,121

2 Change During 2025
Ordinary Capital Total
Admission Calculation Components SSAP No. 101 :
(a) Federal income taxes paid in prior years recoverable by carrybacks $ - $ - $ -
(b) Adjusted gross DTA expected to be realized 8,230,395 (452,274) 7,778,121
(1) DTAs expected to be realized after the balance sheet date 8,230,395 (452,274) 7,778,121
(2) DTAs allowed per limitation threshold XXX XXX 15,312,720
(c) DTAs offset against DTLs (8,131,978) (8,856) (8,140,834)
(d) DTAs admitted as a result of application of SSAP No. 101 $ 98,417 $ (461,130) $ (362,713)

3 (a) Ratio % used to determine recovery period and threshold limitation 185%
(b) Adjusted capital and surplus used to determine 2(b) thresholds $102,084,797

40
TALCOTT RESOLUTION LIFE AND ANNUITY INSURANCE COMPANY
NOTES TO STATUTORY-BASIS FINANCIAL STATEMENTS
YEARS ENDED DECEMBER 31, 2025, 2024 AND 2023


4 Change During 2025
Ordinary Capital
Impact of Tax Planning Strategies:
(a) Determination of adjusted gross DTA and net admitted DTA,
by tax character as a %.
(1) Adjusted gross DTAs amount from Note 5A1c $ 13,019,355 $ (461,130)
(2) % of adjusted gross DTAs by tax character attributable to the impact of
planning strategies - % - %
(3) Net admitted adj. gross DTAs amount from Note 5A1e $ 98,417 $ (461,130)
(4) % of net admitted adjusted gross DTAs by tax character admitted
because of the impact of planning strategies (1) % - %

B. DTLs are not recognized for the following amounts:

Not Applicable.

C. Significant Components of Income Taxes Incurred

1. The components of current income tax (benefit)/expense are as follows:
2025 2024 Change
(a) Federal $ 41,633,472 $ (8,545,006) $ 50,178,478
(b) Foreign - - -
(c) Subtotal 41,633,472 (8,545,006) 50,178,478
(d) Federal income tax on net capital gains 4,091,920 (677,642) 4,769,562
(e) Utilization of capital loss carryforwards - - -
(f) Other - - -
(g) Federal and foreign income taxes incurred $ 45,725,392 $ (9,222,648) $ 54,948,040
2. The main components of the period end deferred tax amounts and the change in those components are as follows:
2025 2024 Change
DTA: Ordinary
Policyholder reserves
$ 38,053,331 $ 42,417,756 $ (4,364,425)
Deferred acquisition costs
119,929,448 110,832,496 9,096,952
Compensation and benefits
1,869 287 1,582
Investments
433,811 (433,811)
Net operating loss carryforward
8,711,268 - 8,711,268
Tax credit carryforward
13,954,532 14,127,915 (173,383)
Other
6,140,920 5,959,748 181,172
Subtotal: DTA Ordinary
186,791,368 173,772,013 13,019,355
Ordinary statutory valuation allowance
- - -
Total adjusted gross ordinary DTA
186,791,368 173,772,013 13,019,355
Nonadmitted ordinary DTA
60,622,824 47,701,886 12,920,938
Admitted ordinary DTA
126,168,544 126,070,127 98,417
DTA: Capital
Investments
706,889 1,168,019 (461,130)
Subtotal: DTA Capital
706,889 1,168,019 (461,130)
Capital statutory valuation allowance
- - -
Total adjusted gross capital DTA
706,889 1,168,019 (461,130)
Nonadmitted capital DTA
- - -
Admitted capital DTA
706,889 1,168,019 (461,130)
Total Admitted DTA $ 126,875,433 $ 127,238,146 $ (362,713)
41
TALCOTT RESOLUTION LIFE AND ANNUITY INSURANCE COMPANY
NOTES TO STATUTORY-BASIS FINANCIAL STATEMENTS
YEARS ENDED DECEMBER 31, 2025, 2024 AND 2023


DTL: Ordinary
Investments
$ 33,999,815 $ 33,840,731 $ 159,084
Deferred and uncollected premium
- - -
Policyholder reserves
- 1,191,888 (1,191,888)
Other
144,317 11,096 133,221
Gross DTL ordinary
34,144,132 35,043,715 (899,583)
DTL: Capital
Investments
29,189,468 36,430,719 (7,241,251)
Other
- - -
Gross DTL capital
29,189,468 36,430,719 (7,241,251)
Total DTL 63,333,600 71,474,434 (8,140,834)
Net adjusted DTA/(DTL)
$ 63,541,833 $ 55,763,712 $ 7,778,121
Adjust for the change in deferred tax on unrealized gains/losses (7,909,230)
Adjust for the change in nonadmitted deferred tax 12,920,938
Adjusted change in net deferred Income Tax $ 12,789,829





D. Reconciliation of federal income tax rate to actual effective rate:

The sum of the income tax incurred and the change in the DTA/DTL is different from the result obtained by applying the statutory federal income tax rate to the pretax income. The significant items causing this difference are as follows:

% of Pre-tax % of Pre-tax % of Pre-tax
2025 income 2024 income 2023 income
Tax effect $ (93,097,317) Tax effect $ 7,240,778 Tax effect $ 48,298,991
Statutory tax $ (19,550,437) 21.00 % $ 1,520,563 21.00 % $ 10,142,788 21.00 %
Tax preferred investments (12,953,662) 13.91 % (13,047,890) (180.20) % (17,031,728) (35.26) %
Interest maintenance reserve 13,122,071 (14.10) % (1,427,199) (19.71) % (856,738) (1.77) %
Amortization of inception gain (8,104,300) 8.71 % (3,454,265) (47.71) % (3,454,265) (7.15) %
VA Hedge gains reported in surplus 13,012,081 (13.98) % (1,073,404) (14.82) % 14,478,051 29.98 %
Prior period adjustments 88,507 (0.10) % 9,563 0.13 % (593,187) (1.23) %
Deferred Gain 48,825,374 (52.45) % - - % - %
Change in deferred tax on non-admitted assets (247,510) 0.27 % 37,996 0.52 % (54,419) (0.11) %
Foreign related investments (2,219,900) 2.38 % (2,528,000) (34.91) % (3,002,000) (6.22) %
All other 963,339 (1.02) % 270,061 3.73 % (262,535) (0.56) %
Total statutory income tax
32,935,563 (35.38) % (19,692,575) (271.97) % (634,033) (1.32) %
Federal and foreign income taxes incurred 45,725,392 (49.12) % (9,222,648) (127.37) % 32,086,803 66.43 %
Change in net deferred income taxes (12,789,829) 13.74 % (10,469,927) (144.60) % (32,720,836) (67.75) %
Total statutory income tax
$ 32,935,563 (35.38) % $ (19,692,575) (271.97) % $ (634,033) (1.32) %

E. Operating loss and tax credit carryforwards and protective tax deposits

1. At December 31, 2025, the Company had $41,482,229 of net operating loss carryforwards, and $13,954,532 of foreign tax credit carryovers which expire between 2029 and 2035.
2. The amount of federal income taxes incurred in the current year and each preceding year that will be available for recoupment in the event of future net losses are:

2025 -
2024 -
2023 -

42
TALCOTT RESOLUTION LIFE AND ANNUITY INSURANCE COMPANY
NOTES TO STATUTORY-BASIS FINANCIAL STATEMENTS
YEARS ENDED DECEMBER 31, 2025, 2024 AND 2023


3. The aggregate amount of deposits reported as admitted assets under Section 6603 of the IRS Code was $0 as of December 31, 2025.

F. Consolidated Federal Income Tax Return

1. The Company's federal income tax return is included within TR Re, Ltd.'s ("TR Re"), consolidated federal income tax return. The consolidated federal income tax return includes the following entities:

TR Re, Ltd.
Talcott Resolution Life Insurance Company (For the period January 1, 2025 - July 1, 2025)
Talcott Resolution Life and Annuity Insurance Company

2. Federal Income Tax Allocation

Estimated tax payments are made quarterly (if necessary), at which time intercompany tax balances are settled. In the subsequent year, additional settlements (if necessary) are made on the unextended due date of the return and at the time the return is filed. The method of allocation among affiliates of the Company is subject to written agreement approved by the Board of Directors and based upon separate return calculations with current credit for net losses to the extent the losses provide a benefit in the consolidated tax return.

G. Any federal or foreign income tax loss contingencies as determined in accordance with SSAP No.5 - Liabilities, Contingencies and Impairments of Assets with modifications provided in SSAP No. 101 Income Taxes with reasonable possibility that the total liability will significantly increase within 12 months of the reporting date.

Not Applicable.

H. Repatriation Transition Tax (RTT)

Not Applicable.

I. Alternative Minimum Tax (AMT) Credit

Not Applicable.
43
TALCOTT RESOLUTION LIFE AND ANNUITY INSURANCE COMPANY
NOTES TO STATUTORY-BASIS FINANCIAL STATEMENTS
YEARS ENDED DECEMBER 31, 2025, 2024 AND 2023


6. Reinsurance

The amount of reinsurance recoverables from and payables to affiliated and unaffiliated reinsurers were $76,185,846 and $24,604,927 respectively, as of December 31, 2025 and $65,644,758 and $85,525,728 respectively, as of December 31, 2024.

The effect of reinsurance as of and for the years ended December 31 is summarized as follows:
2025 Direct Assumed Ceded Net
Aggregate reserve for future benefits $ 19,014,136,416 $ 386,919,370 $ (16,438,003,980) $ 2,963,051,806
Liability for deposit-type contracts 603,067,250 413,934 (477,791,106) 125,690,078
Policy and contract claim liabilities 199,070,797 12,029,516 (190,556,757) 20,543,556
Premium and annuity considerations 701,686,251 45,092,751 (9,603,103,431) (8,856,324,429)
Annuity benefits 380,334,745 5,333,743 (221,349,409) 164,319,079
Death, disability and other benefits 1,190,497,042 69,021,385 (1,255,314,371) 4,204,056
Surrenders and other fund withdrawals 2,713,097,288 166,443,910 (2,243,694,135) 635,847,063
2024 Direct Assumed Ceded Net
Aggregate reserve for future benefits $ 19,042,528,013 $ 405,615,588 $ (15,214,130,587) $ 4,234,013,014
Liability for deposit-type contracts 657,180,562 432,390 (514,300,212) 143,312,740
Policy and contract claim liabilities 234,711,671 11,530,140 (227,268,697) 18,973,114
Premium and annuity considerations 739,626,216 48,748,921 (715,899,055) 72,476,082
Annuity benefits 386,739,099 5,360,813 (198,027,504) 194,072,408
Death, disability and other benefits 1,352,584,345 59,511,745 (1,412,987,316) (891,226)
Surrenders and other fund withdrawals 2,807,056,045 175,749,681 (1,617,443,705) 1,365,362,021

2023 Direct Assumed Ceded Net
Aggregate reserves for future benefits $ 18,910,472,242 $ 430,711,040 $ (14,902,548,096) $ 4,438,635,186
Liability for deposit-type contracts 733,418,140 430,092 (577,312,682) 156,535,550
Policy and contract claim liabilities 209,526,698 14,022,376 (199,675,762) 23,873,312
Premium and annuity considerations 774,475,502 51,512,860 (751,972,988) 74,015,374
Annuity Benefits 392,489,618 7,122,853 (192,681,062) 206,931,409
Death, disability and other benefits 1,207,941,612 73,620,906 (1,277,266,621) 4,295,897
Surrenders and other fund withdrawals 2,452,684,835 158,857,240 (1,404,968,467) 1,206,573,608


44
TALCOTT RESOLUTION LIFE AND ANNUITY INSURANCE COMPANY
NOTES TO STATUTORY-BASIS FINANCIAL STATEMENTS
YEARS ENDED DECEMBER 31, 2025, 2024 AND 2023


A. External reinsurance

The Company cedes insurance to unaffiliated insurers in order to limit its maximum losses. Such agreements do not relieve the Company from its primary liability to policyholders. The inability or unwillingness of a reinsurer to meet its financial obligations to the Company, including the impact of any insolvency or rehabilitation proceedings involving a reinsurer that could affect the Company's access to collateral held in trust, could have a material adverse effect on the Company's financial condition, results of operations and liquidity. The Company reduces this risk by evaluating the financial condition of reinsurers and monitoring for possible concentrations of credit risk. As of December 31, 2025, the Company has two reinsurance-related concentrations of credit risk greater than 10% of the Company's capital and surplus. The concentrations, which are actively monitored, are as follows: reserve credits totaling $14.3 billion for Prudential Financial Inc. ("Prudential") offset by $11.1 billion of market value of assets held in trust, for a net exposure of $3.2 billion. In addition, reserve credits totaling $1.5 billion for Commonwealth Annuity and Life Insurance Company are offset by $1.4 billion of market value of assets held in trust, for a net exposure of $0.1 billion. As of December 31, 2024, the Company had two reinsurance-related concentrations of credit risk greater than 10% of the Company's capital and surplus. The concentrations, which were actively monitored, were as follows: reserve credits totaling $14.2 billion for Prudential offset by $10.8 billion of market value of assets held in trust, for a net exposure of $3.4 billion. In addition, reserve credits totaling $1.5 billion for Commonwealth Annuity and Life Insurance Company were offset by $1.4 billion of market value of assets held in trust, for a net exposure of $0.1 billion.

The Company has a reinsurance agreement under which the reinsurer has a limited right to unilaterally cancel the reinsurance for reasons other than for nonpayment of premium or other similar credits. The estimated amount of aggregate reduction in the Company's surplus of this limited right to unilaterally cancel this reinsurance agreement by the reinsurer for which such obligation is not presently accrued is $20,106,744 in 2025, a decrease of $850,632 from the 2024 balance of $20,957,376. The total amount of reinsurance credits taken for this agreement was $25,451,575 in 2025, a decrease of $1,076,749 from the 2024 balance of $26,528,324.

On January 2, 2013, The Hartford completed the sale of its Individual Life insurance business to Prudential. The net gain totaling $600 million, before tax, was deferred as a component of Other than special surplus funds on the Company's Statements of Admitted Assets, Liability and Capital and Surplus, and will be amortized over 20 years as earnings are projected to emerge from this block of business. Amortization amounts, which are recorded as Commissions and expense allowances on reinsurance ceded on the Statements of Operations and as Amortization and a decrease of Gain on inforce reinsurance on the Statements of Changes in Capital and Surplus totaled $13.2 million, $13.2 million, and $13.2 million in 2025, 2024 and 2023, respectively.

In 2018, the Company and TL entered into reinsurance agreements with Commonwealth Annuity and Life Insurance Company, a subsidiary of Global Atlantic Financial Group. The net gain totaling $73 million, after tax, was deferred as a component of Other than special surplus funds on the Company's Statements of Admitted Assets, Liabilities and Capital and Surplus, and will be amortized over a period of 25 years as earnings are projected to emerge from this block of business. Amortization amounts, which are recorded as Commission and expense allowances on reinsurance ceded on the Statements of Operation and as amortization and a decrease of Gain on inforce reinsurance on the Statements of Changes in Capital and Surplus totaled $3.3 million, $3.3 million, and $3.3 million in 2025, 2024, and 2023, respectively.
B. Reinsurance with Affiliates

The Company entered into an affiliated reinsurance agreement with its indirect parent, TR Re, Ltd., an unauthorized reinsurer, which was effective October 1, 2021, and implemented December 30, 2021. Pursuant to such reinsurance agreement, the Company generally ceded 50% of the Company's variable annuity and payout annuity blocks with certain variable annuity guarantees ceded at 100% and certain structured settlement contracts ceded at a lesser quota share percentage. All such business is ceded on a modified coinsurance basis. The net impact of this reinsurance transaction on the Company's results of operations and financial condition included ceded premiums totaling $13.5 billion, substantially offset by reserve adjustments on reinsurance totaling $13.4 billion and the transfer of IMR totaling approximately $104.4 million. The transfer of IMR was offset by funds held under reinsurance treaties with unauthorized reinsurers totaling $104.4 million which are included in Other liabilities. The Company paid additional amounts totaling $35.6 million (before tax) and as a result, incurred a net loss for the same amount.

On July 1, 2025, the Company recaptured an affiliate reinsurance agreement, originally effective as of October 1, 2021, from TR Re. As a result of the recapture, the Company recorded interest maintenance reserve balances totaling $96
45
TALCOTT RESOLUTION LIFE AND ANNUITY INSURANCE COMPANY
NOTES TO STATUTORY-BASIS FINANCIAL STATEMENTS
YEARS ENDED DECEMBER 31, 2025, 2024 AND 2023


million and reduced funds withheld under reinsurance treaties with unauthorized reinsurers by $96 million. The Company also recorded negative ceded premiums totaling $10.6 billion, partially offset by reserve adjustments on reinsurance of $10.5 billion for recaptured insurance reserves previously ceded on a modified coinsurance basis. Additionally, the Company paid a recapture fee to TR Re of $190 million (before tax).

On July 1, 2025, the Company entered into a reinsurance agreement on a coinsurance and modified coinsurance basis with TL (the "TL/TLA Reinsurance Agreement"), pursuant to which the Company reinsured certain variable annuity and payout reserves to TL. As a result, the Company recorded reserve credits for insurance reserves totaling $1.1 billion ceded on a coinsurance basis and ceded IMR balances totaling $21 million. The Company also recorded ceded premiums totaling $19.5 billion, partially offset by reserve adjustments on reinsurance of $18.3 billion for insurance reserves ceded on a modified coinsurance basis. As a result of the reinsurance, the Company recognized an after-tax deferred gain in surplus of $233 million which will be amortized into the Summary of Operations over the life of the business.

46
TALCOTT RESOLUTION LIFE AND ANNUITY INSURANCE COMPANY
NOTES TO STATUTORY-BASIS FINANCIAL STATEMENTS
YEARS ENDED DECEMBER 31, 2025, 2024 AND 2023


7. Related Party Transactions

Transactions between the Company and its affiliates, relate principally to tax settlements, reinsurance, intercompany lending, insurance coverages, rental and service fees, capital contributions, returns of capital and payments of dividends. Substantially all general insurance expenses related to the Company, including rent and benefit plan expenses, are initially paid by TL.

Direct expenses are allocated using specific identification and indirect expenses are allocated using other applicable methods. Indirect expenses include those for corporate areas which, depending on type, are allocated based on either a percentage of direct expenses or on utilization. As a result of a new Amended and Restated Services and Cost Allocation Agreement effective July 1, 2021, certain indirect expense are allocated on a cost plus basis.

The Company reported $33,283,192 and $40,249,340 as payable to parents, subsidiaries and affiliates as of December 31, 2025 and 2024, respectively. Amounts are settled in accordance with terms of the agreements.

Effective March 31, 2025, TLA entered into an agreement among several subsidiaries of Talcott Financial Group, Ltd. to optimize the use of cash by facilitating the lending and borrowing of funds between the Company and its affiliates (the "Cash Management Agreement"). The aggregate individual and combined (with TL) lending and borrowing amount permitted under the agreement for the Company is $1 billion.

On December 31, 2025, TLA borrowed $300 million from TLI per the cash management agreement. The interest rate of this loan is 3.83% and the maturity date is March 31, 2026.

On November 17, 2025, TLA borrowed $300 million from TLI per the cash management agreement. The interest rate of this loan is 4.53% and the maturity date is December 31, 2025. On December 31, 2025, this loan was repaid plus accrued interest.

On September 30, 2025, TLA borrowed $350 million from TLI per the cash management agreement. The interest rate of this loan is 4.53% and the maturity date is December 31, 2025. On November 17, 2025, this loan was repaid plus accrued interest.

On July 1, 2025, TLA borrowed $350 million from TLI per the cash management agreement. The interest rate of this loan was 4.78% and the maturity date was September 30, 2025. On September 30, 2025, this loan was repaid plus accrued interest.

On March 31, 2025, TLA loaned $440 million to Talcott Financial Group ("TFG") under the Cash Management Agreement. The original interest rate of this loan was 4.92% and the maturity date was July 9, 2025. On June 5, 2025, $140 million was repaid to TLA with accrued interest and the loan was cancelled and reissued as a $300 million loan to TFG under the Cash Management Agreement. The interest rate at reissuance was 4.78% and the original maturity date was September 30, 2025. The loan was repaid with accrued interest on July 1, 2025.

Effective September 21, 2022, TLA entered into an intercompany liquidity agreement between several Talcott entities: including TR Re, TLR and TLAR. TLA may lend a total of $200 million in aggregate to the affiliates. TLA may also borrow a total of $600 million consisting of $200 million from each of the aforementioned entities. Under the agreement, TLR, TLAR and TR Re cannot extend loans between one another. This agreement was terminated effective March 31, 2025.

On October 15, 2024, TLA loaned $140 million to TR Re per the intercompany liquidity agreement. The interest rate of this loan was 4.21% and the maturity date was October 14, 2025. On March 31, 2025, this loan was repaid plus accrued interest.

On July 3, 2024, TLA loaned $300 million to TL per the 2018 intercompany liquidity agreement. The interest rate of this loan was 5.06% and the maturity date was July 2, 2025. On March 31, 2025, this loan was repaid plus accrued interest.

On January 27, 2023, TLA loaned $60M to TR Re per the intercompany liquidity agreement. The interest rate of this loan was 4.5% and the maturity date was January 26, 2024. The loan was repaid on December 21, 2023.

On October 16, 2023, TLA loaned $140M to TR Re per the intercompany liquidity agreement. The interest rate of this loan is 5.22% and the maturity date is October 15, 2024. The loan was repaid on October 15, 2024.

47
TALCOTT RESOLUTION LIFE AND ANNUITY INSURANCE COMPANY
NOTES TO STATUTORY-BASIS FINANCIAL STATEMENTS
YEARS ENDED DECEMBER 31, 2025, 2024 AND 2023


Effective June 1, 2018, TL entered into an Intercompany Liquidity Agreement (the "Liquidity Agreement") with TLA. The Agreement allows for short-term advances of funds between TL and TLA. Effective March 31, 2025, the aggregate lending and borrowing amount permitted under the agreement was amended from $1 billion to a total of $500 million. There are currently no advances outstanding.

In July 2025, TL contributed 100% of the issued and outstanding shares of Talcott Resolution International Life Reassurance Company ("TIL"), valued at $13,311,343, to the Company.

In July 2025, TL distributed 100% of the issued and outstanding shares of the Company to TR Re, which then became the Company's direct parent.

An extraordinary dividend in the amount of $8,546,001 on July 1, 2025 was distributed by the Company, representing 100% of the common stock ownership in Talcott Resolution Distribution Company, Inc.

On December 24, 2024, TLA paid a dividend of $275,000,000 to Talcott Resolution Life Insurance Company ("TL"), the Company's parent at the time.

On July 6, 2023, TLA paid a dividend of $94,800,000 to TL, the Company's parent at the time.

In June 2025, TLA sold approximately $110 million of Collateral Loan Obligations (CLO) to its parent at the time, TL, in exchange for cash. The exchange was completed prior to reorganization finalized in July. The exchange was accounted for at book value, as a non-economic transaction between parent and subsidiary.

Related party transactions may not be indicative of the costs that would have been incurred on a stand-alone basis. For additional information, see Notes 5, 6, 8 and 13.

8. Retirement Plans, Other Postretirement Benefit Plans and Postemployment Benefits

In September, 2021, the Company adopted a new Long-term Cash Incentive Plan ("the Plan") to attract and retain executive and management level employees of the Company and its affiliates in support of the continued growth and long-term performance of the Company. U.S. employees in certain employment bands (generally executive and management level) are eligible to participate in the Plan. Targets vary by employment level. Awards are issued annually at the discretion of management, and vest in full on the third anniversary of the date of the grant, subject to the participant's continued employment with the Company. Any payments to a participant or other person hereunder shall be paid from the general assets of the Company, and each participant shall have the status of an unsecured general creditor of the Company with respect to any amounts payable under the Plan. The expense accrued for the Company during 2025 and 2024 was immaterial.

As of June 1, 2018, TL adopted an investment and savings plan, the Talcott 401(k) Plan and a non-qualified savings plan, the Talcott Resolution Deferred Compensation Plan. Effective December 31, 2018, both plans were assigned to TLI, the Company's indirect parent. Substantially all U.S. employees of the Company are eligible to participate in the Talcott 401(k) Plan under which designated contributions can be invested in a variety of investments. Subject to IRS limits, the employee can contribute up to 90% of their eligible compensation. The Company's contributions include a non-elective contribution of 2% of eligible compensation and a dollar-for-dollar matching contribution of up to 6% of eligible compensation contributed by the employee each pay period.

The Talcott Resolution Deferred Compensation Plan is for a select group of management and provides an opportunity to defer compensation on a pre-tax basis and accumulate tax-deferred earnings. The Plan has a 6% matching contribution for eligible compensation earned in excess of the 401(a)(17) $350,000 limit as of the most current year end. Eligible compensation includes salary and bonuses and participants can defer up to 80% of their eligible pay. The Plan shall represent an unfunded, unsecured obligation of the company to provide deferred compensation. Any payments to a participant or other person hereunder shall be paid from the general assets of the Company, and each participant shall have the status of an unsecured general creditor of the Company with respect to any amounts payable under the Plan. The accrued liability for the company during 2025 and 2024 was immaterial.
The Company participates in Talcott sponsored postemployment plans that provide for medical and salary replacement benefits for employees on long-term disability. The expenses allocated to the Company for long term disability were not material to the results of operations for the years ended December 31, 2025 and 2024.
48
TALCOTT RESOLUTION LIFE AND ANNUITY INSURANCE COMPANY
NOTES TO STATUTORY-BASIS FINANCIAL STATEMENTS
YEARS ENDED DECEMBER 31, 2025, 2024 AND 2023




9. Debt

A. FHLB (Federal Home Loan Bank) Agreements

1.The Company is a member of the Federal Home Loan Bank of Boston ("FHLB"). Membership allows the Company access to collateralized advances, which may be used to support various spread-based businesses or to enhance liquidity management. FHLB membership requires the Company to own member stock and borrowings require the purchase of activity-based stock in an amount (generally between 3.0% and 4.0% of the principal balance) based upon the term of the outstanding advances. FHLB stock held by the Company is classified within Common stocks on the Statements of Admitted Assets, Liabilities and Capital and Surplus. As of December 31, 2025 and 2024, there were no advances outstanding.

State law limits the Company's ability to pledge, hypothecate or otherwise encumber its assets. The amount of advances that can be taken by the Company are dependent on the assets pledged by the Company to secure the advances, and are therefore subject to this legal limit. The pledge limit is recalculated annually based on statutory admitted assets and capital and surplus. For 2025 and 2024, the Company's pledge limits were $184,000,000 and $157,000,000, respectively. The Company would need to seek prior written approval from the Department in order to exceed this limit. If the Company were to pursue borrowing additional amounts under its estimated capacity it may have to purchase additional shares of activity stock.

2. FHLB Capital Stock

a. Aggregate Totals

1.As of December 31, 2025

1
Total
2+3 		2
General Account 		3
Separate Accounts
a. Membership Stock - Class A - - -
b. Membership Stock - Class B 2,914,900 2,914,900 -
c.
Activity Stock
- - -
d. Excess Stock 87,500 87,500 -
e. Aggregate Total (a+b+c+d) 3,002,400 3,002,400 -
f. Actual or estimated borrowing capacity as determined by the insurer 184,000,000 184,000,000 -

2. As of December 31, 2024

1
Total
2+3 		2
General Account 		3
Separate Accounts
a. Membership Stock - Class A - - -
b. Membership Stock - Class B 3,254,300 3,254,300 -
c.
Activity Stock
- - -
d. Excess Stock - - -
e. Aggregate Total (a+b+c+d) 3,254,300 3,254,300 -
f. Actual or estimated borrowing capacity as determined by the insurer 157,000,000 157,000,000 -



49
TALCOTT RESOLUTION LIFE AND ANNUITY INSURANCE COMPANY
NOTES TO STATUTORY-BASIS FINANCIAL STATEMENTS
YEARS ENDED DECEMBER 31, 2025, 2024 AND 2023




b. Membership Stock (Class A and B) Eligible for Redemption as of December 31, 2025

Eligible for Redemption
Membership Stock 1 Current Period Total (2+3+4+5+6) 2 Not Eligible for Redemption 3 Less Than 6 Months 4 6 Months to Less than 1 Year 5 1 to Less than 3 Years 6 3 to 5 Years
1 Class A $ - $ - $ - $ - $ -
2 Class B 3,002,400 2,914,806 87,594 - - -

3. Collateral Pledged to FHLB

a. Amount Pledged as of December 31, 2025

1 Fair Value 2 Carrying Value Aggregate Total Borrowing
1 Current Year Total General and Separate Accounts (Total Collateral Pledged (Lines 2 + 3) $ 90,780,508 $ 96,444,026 $ -
2 Current Year General Account: Total Collateral Pledged 90,780,508 96,444,026 -
3 Current Year Separate Account: Total Collateral Pledged - - -
4 Prior Year-end Total General and Separate Accounts: Total Collateral Pledged 94,656,248 104,427,367 -

b. Maximum Amount Pledged During Reporting Period
1 Fair Value 2 Carrying Value 3 Amount Borrowed at Time of Maximum Collateral
1 Current Year Total General and Separate Accounts (Maximum Collateral Pledged (Lines 2 + 3) 93,683,964 103,248,363 $ -
2 Current Year General Account Maximum Collateral Pledged 93,683,964 103,248,363 -
3 Current Year Separate Account Maximum Collateral Pledged - - -
4 Prior Year-end Total General and Separate Accounts Maximum Collateral Pledged 107,289,771 115,082,140 -

4. a. & b. Borrowing from FHLB - Amount as of the Reporting Date

The Company had no borrowings from the FHLB as of December 31, 2025 and 2024.

c. FHLB - Prepayment Obligations

The Company does not have any prepayment obligations as of December 31, 2025 and 2024.

50
TALCOTT RESOLUTION LIFE AND ANNUITY INSURANCE COMPANY
NOTES TO STATUTORY-BASIS FINANCIAL STATEMENTS
YEARS ENDED DECEMBER 31, 2025, 2024 AND 2023



10. Capital and Surplus and Shareholder Dividend Restrictions

Dividend Restrictions

The maximum amount of dividends which can be paid to shareholders by Connecticut domiciled insurance companies, without prior approval of the Connecticut Insurance Commissioner (the "Commissioner"), is generally restricted to the greater of 10% of surplus as of the preceding December 31st or the net gain from operations after dividends to policyholders, federal income taxes and before realized capital gains or (losses) for the previous year. In addition, if any dividend exceeds the insurer's earned surplus, it requires the prior approval of the Commissioner. Dividends are paid as determined by the Board of Directors in accordance with state statutes and regulations, and are not cumulative. For additional information on dividends paid in 2023, 2024 and 2025 see Note 7. With respect to dividends to its parent, TL, the Company's dividend limitation under the holding company laws of Connecticut is $74,999,714 in 2026.

Unassigned Funds

The portion of unassigned funds represented or reduced by each item below at December 31 was as follows:
2025 2024
Unrealized capital losses, gross of tax $ 103,155,879 $ 50,211,598
Asset valuation reserve (122,433,569) (126,399,841)
Nonadmitted asset values (91,520,600) (63,921,401)
Separate Account expense allowance 4,156,155 23,568,381

11. Separate Accounts

The Company maintained Separate Account assets totaling $24,106,820,931, $23,803,924,174 as of December 31, 2025 and 2024 respectively. The Company utilizes Separate Accounts to record and account for assets and liabilities for particular lines of business. For the current reporting year, the Company recorded assets and liabilities for individual variable annuities, variable life and variable universal life product lines in the Separate Accounts.

The Separate Account classifications are supported by state statute and are in accordance with the domiciliary state procedures for approving items within the Separate Accounts. Separate Account assets are segregated from other investments and reported at fair value. Some assets are considered legally insulated whereas others are not legally insulated from the General Account. As of December 31, 2025 and 2024, the Company's Separate Account statement included legally insulated assets of $24,106,820,931 and $23,803,924,174, respectively.

Separate Account liabilities are determined in accordance with prescribed actuarial methodologies, which approximate the market value less applicable surrender charges. The resulting surplus is recorded in the General Account Statements of Operations as a component of Net transfers from Separate Accounts. The Company's Separate Accounts are non-guaranteed, wherein the policyholder assumes substantially all the investment risks and rewards. Investment income (including investment gains and losses) and interest credited to policyholders on Separate Account assets are not separately reflected in the Statements of Operations.

Separate Account fees, net of minimum guarantees, were $453,919,629, $466,445,205 and $458,449,252 for the years ended December 31, 2025, 2024 and 2023, respectively, and are recorded as a component of fee income on the Company's Statements of Operations.

51
TALCOTT RESOLUTION LIFE AND ANNUITY INSURANCE COMPANY
NOTES TO STATUTORY-BASIS FINANCIAL STATEMENTS
YEARS ENDED DECEMBER 31, 2025, 2024 AND 2023


An analysis of the Separate Accounts as of December 31, 2025 is as follows:
Indexed Nonindexed Guaranteed Less Than or Equal to 4% Nonindexed Guaranteed More Than 4% Nonguaranteed Separate Accounts Total
Premium considerations or deposits for the
year ended December 31, 2025 $ - $ - $ - $ 274,514,493 $ 274,514,493
Reserves at year-end:
For accounts with assets at:
Fair value $ - $ - $ - $ 24,065,027,892 $ 24,065,027,892
Amortized cost - - - - -
Total reserves $ - $ - $ - $ 24,065,027,892 $ 24,065,027,892
By withdrawal characteristics:
Subject to discretionary withdrawal $ - $ - $ - $ - $ -
With market value adjustment - - - - -
At book value without market value adjustment
and with surrender charge of 5% or more - - - - -
At fair value - - - 23,773,204,010 23,773,204,010
At book value without market value adjustment
and with surrender charge of less than 5% - - - 74,242,486 74,242,486
Subtotal - - - 23,847,446,496 23,847,446,496
Not subject to discretionary withdrawal - - - 217,581,396 217,581,396
Total $ - $ - $ - $ 24,065,027,892 $ 24,065,027,892

Below is a reconciliation of net transfers from Separate Accounts:
December 31, 2025 December 31, 2024 December 31, 2023
Transfer to Separate Accounts 274,514,493 $ 282,662,034 $ 254,614,683
Transfer from Separate Accounts 2,822,904,439 2,836,264,001 2,394,979,793
Net Transfer from Separate Accounts (2,548,389,946) (2,553,601,967) (2,140,365,110)
Internal exchanges and other Separate Account activity (26,484,579) (7,574,602) (4,196,019)
Transfer from Separate Accounts on the Statements of Operations $ (2,574,874,525) $ (2,561,176,569) $ (2,144,561,129)

12. Commitments and Contingent Liabilities

A. Litigation

On August 15, 2023, Talcott Resolution Life Insurance Company and Talcott Resolution Life and Annuity Insurance Company (collectively "Talcott Resolution") were named as defendants in a putative class action lawsuit in the United States District Court for the District of Massachusetts. The case is captioned as follows: Casey v. Talcott Resolution Life Insurance Company and Talcott Resolution Life and Annuity Insurance Company, et al. The lawsuit relates to data security events involving the MOVEit file transfer system ("MOVEit Cybersecurity Incident"). The MOVEit file transfer system is software used by a broad range of companies to move sensitive electronic data. PBI Research Services ("PBI"), a former third-party service provider for Talcott Resolution, used the MOVEit file transfer system in the performance of its services. PBI used the software on behalf of Talcott Resolution to, among other things, search various databases to identify the deaths of insured persons and annuitants under life insurance policies and annuity contracts, respectively, as required by applicable law. Plaintiff seeks to represent various classes and subclasses of Talcott Resolution insurance policy and annuity contract holders whose data allegedly was accessed or potentially accessed in connection with the MOVEit Cybersecurity Incident.

Plaintiff alleges that Talcott Resolution breached a purported duty to safeguard their sensitive data from unauthorized access. The complaint asserts claims for, among other things, negligence, negligence per se, breach of contract, unjust enrichment, and violations of various consumer protection statutes, and the Plaintiffs seek declaratory and injunctive relief, compensatory and punitive damages, restitution, attorneys' fees and costs, and other relief. On October 4, 2023, the Judicial Panel on Multidistrict
52
TALCOTT RESOLUTION LIFE AND ANNUITY INSURANCE COMPANY
NOTES TO STATUTORY-BASIS FINANCIAL STATEMENTS
YEARS ENDED DECEMBER 31, 2025, 2024 AND 2023


Litigation issued an order consolidating all actions relating to the MOVEit Cybersecurity Incident before a single federal judge in the United States District Court for the District of Massachusetts. We intend to vigorously defend the action.

The Company is or may become involved in various legal actions, some of which assert claims for substantial amounts. Such actions have alleged, for example, bad faith in the handling of insurance claims and improper sales practices in connection with the sale of insurance and investment products. Some of these actions also seek punitive damages. Management expects that the ultimate liability, if any, with respect to such lawsuits, after consideration of provisions made for estimated losses, will not be material to the financial condition of the Company. Nonetheless, given the large or indeterminate amounts sought in certain of these actions, and the inherent unpredictability of litigation, it is possible that an adverse outcome in certain matters could, from time to time, have a material adverse effect on the Company's financial condition, results of operations or cash flows in particular quarterly or annual periods.

B. Guaranty Funds

In all states, insurers licensed to transact certain classes of insurance are required to become members of a guaranty fund. In most states, in the event of the insolvency of an insurer writing any such class of insurance in the state, members of the funds are assessed to pay certain claims of the insolvent insurer. A particular state's fund assesses its members based on their respective written premiums in the state for the classes of insurance in which the insolvent insurer was engaged. Assessments are generally limited for any year to one or two percent of premiums written per year, depending on the state.

Under insurance guaranty fund laws in each state, the District of Columbia and Puerto Rico, insurers licensed to do business can be assessed by state insurance guaranty associations for certain obligations of insolvent insurance companies to policyholders and claimants. Part of the assessments paid by/refunded to the Company pursuant to these laws may be used as credits for a portion of the associated premium taxes. The Company paid immaterial net guaranty fund assessments in 2025, 2024, and 2023. The Company had immaterial guaranty fund receivables as of December 31, 2025 and 2024, respectively.

C. Contingent Commitments

As of December 31, 2025 and 2024, the Company has outstanding commitments totaling $558,686,348 and $291,031,590, respectively, of which $354,924,577 and $188,731,161, respectively, is committed to fund limited partnership and other alternative investments, which may be called by the partnership during the commitment period to fund the purchase of new investments and partnership expenses. Additionally, at December 31, 2025 and 2024, $14,665,731 and $46,729,149, respectively, is largely related to commercial whole loans. The remaining outstanding commitments of $189,096,040 and $55,571,280 are related to various funding obligations associated with private placement securities, as of December 31, 2025 and 2024, respectively.

Detail of Other Contingent Commitments
1

Nature and
Circumstances of
Guarantee and Key
Attributes, Including
Date and Duration of
Agreement 		2






Liability
Recognition of
Guarantee 		3


Ultimate
Financial
Statement
Impact if Action
Under the
Guarantee
is Required 		4

Maximum
Potential Amount
of Future
Payments
the Guarantor Could
be Required to
Make 		5




Current Status of Payment or
Performance Risk of Guarantee
Effective February 1, 2018, TLA guaranteed the obligations of Talcott Resolution Comprehensive Employee Benefit Service Company ("TCB"), a wholly-owned subsidiary, with respect to certain structured settlement liability obligations to provide an increased level of security to claimants under such structured settlements; these obligations were assumed from TL on February 1, 2018. As of December 31, 2024 and December 31, 2023, no liability was recorded for this guarantee, as TCB was able to meet these policyholder obligations.. $ - Increase in Investments in SCA, Dividends to stockholders (capital contribution), Expense, or Other Unlimited (1) The guaranteed affiliate maintains surplus in addition to policyholder reserves. The payment or performance risk of this guarantee is low as It is unlikely that this guarantee will be triggered.

(1) There is no limit on the Company's guarantee to pay policyholder obligations on behalf of the affiliate for the contracts covered in the guarantee agreement.

53
TALCOTT RESOLUTION LIFE AND ANNUITY INSURANCE COMPANY
NOTES TO STATUTORY-BASIS FINANCIAL STATEMENTS
YEARS ENDED DECEMBER 31, 2025, 2024 AND 2023


D. Leases

Transactions include rental facilities and equipment. Rent paid by the Company for its share of space occupied and equipment used by the Company was $895,060, $995,636 and $723,965 in 2025, 2024, and 2023, respectively. Future minimum rental commitments are immaterial.

The office of the Company, together with its parent and other life insurance affiliates, is located in Hartford, Connecticut.
E. Tax Matters

The Company files income tax returns in the U.S. federal jurisdiction and various state jurisdictions. The Company is no longer subject to U.S. federal or state and local income tax examinations for years prior to 2021, except for net operating loss carryforwards utilized in open tax years. Management believes that adequate provision has been made in the financial statements for any potential adjustments that may result from tax examinations and other tax-related matters for all open tax years.

The Company believes it is more likely than not that all deferred tax assets will be fully realized. Consequently, no valuation allowance has been provided. In assessing the need for a valuation allowance, management considered future taxable temporary difference reversals, future taxable income exclusive of reversing temporary differences and carryovers, taxable income in open carryback years and other tax planning strategies. From time to time, tax planning strategies could include holding a portion of debt securities with market value losses until recovery, making investments which have specific tax characteristics, and business considerations such as asset-liability matching.

13. Subsequent Events

On January 28, 2026, the Company executed a funding agreement with a special purpose vehicle for $250 million, with the same effective date, when the initial funding occurred. Funding agreements are considered deposit-type contracts for U.S. Statutory reporting purposes. The Company recorded a deposit liability in line 3, Liability for deposit-type contracts, in the financial statements in the amount of the funding on the date the agreements were funded.

On February 2, 2026, the Company paid down $250 million of the $300 million cash management agreement loan from TLI. See Note 7. Related Party Transactions for further detail on the loan.

The Company has evaluated events subsequent to December 31, 2025, through March 27, 2026, the date the statutory-basis financial statements were available to be issued. The Company has not evaluated subsequent events after that date for presentation in these statutory-basis financial statements. There were no other subsequent events that had a material impact on the financial results of the Company.



















54
TALCOTT RESOLUTION LIFE AND ANNUITY INSURANCE COMPANY
SCHEDULE I - SELECTED FINANCIAL DATA
DECEMBER 31, 2025
Investment income earned:
U.S. government bonds $ 11,319,964
Bonds exempt from U.S. tax -
Other bonds (unaffiliated) 134,186,672
Bonds of affiliates 1,475,172
Preferred stocks (unaffiliated) (12,075)
Preferred stocks of affiliates -
Common stocks (unaffiliated) 1,188,312
Common stocks of affiliates -
Mortgage loans 31,786,806
Real estate -
Contract loans 11,407
Cash, cash equivalents and short-term investments 16,643,962
Derivative instruments (7,675,498)
Other invested assets 52,835,884
Aggregate write-ins for investment expense (6,133,099)
Gross investment income 235,627,507
Less: Investment expenses 14,284,371
Net investment income $ 221,343,136
Real estate owned - book value less encumbrances: $ -
Mortgage loans - book value:
Farm mortgages $ -
Mezzanine mortgages -
Commercial mortgages 577,794,520
Total mortgage loans $ 577,794,520
Mortgage loans by standing - book value:
Good standing $ 577,794,520
Good standing with restructured terms -
Interest overdue more than 90 days -
Not in foreclosure -
Foreclosure in process -
Other long-term assets - statement value: $ 603,880,764
Collateral loans: $ -
Bonds, cash equivalents and stock of parent, subsidiaries and affiliates - book value:
Bonds $ 8,712,860
Preferred stocks -
Common stocks 16,142,964
Bonds, cash equivalents and short-term investments by class and maturity:
By maturity - statement value
Due within one year or less $ 221,964,957
Over 1 year through 5 years 567,096,139
Over 5 years through 10 years 620,261,206
Over 10 years through 20 years 670,597,514
Over 20 years 913,988,653
No maturity Date -
Total by maturity (1) $ 2,993,908,469
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TALCOTT RESOLUTION LIFE AND ANNUITY INSURANCE COMPANY
SCHEDULE I - SELECTED FINANCIAL DATA
DECEMBER 31, 2025
By class - statement value
Class 1 $ 1,850,976,598
Class 2 1,116,318,149
Class 3 22,460,429
Class 4 1,074,083
Class 5 3,077,263
Class 6 1,947
Total by class (1) $ 2,993,908,469
Total publicly traded $ 1,842,685,647
Total privately placed 1,151,222,822
Total by major type (1) $ 2,993,908,469
(1) Excludes money market investments of $121,559,149 that have not been rated by the SVO and/or have not received exempt status.
Investment balances:
Preferred stocks - statement value $ 1,850,888
Common stocks - statement value 9,886,171
Short-term investments - statement value 946,363
Options, caps, floors, collars, swaps and forwards open - statement value 43,476,283
Futures open - fair value -
Cash on deposit 73,049,108
Cash equivalents 121,559,149
Life insurance in force (in thousands):
Industrial $ -
Ordinary 107,654,070
Credit life -
Group life 115,500
Amount of accidental death insurance in force under (in thousands):
Ordinary policies $ 113,327
Policies with disability provisions in force (in thousands):
Industrial $ -
Ordinary 3,551,636
Credit life -
Group life -
Supplemental contracts in force:
Ordinary - not involving life contingencies
Amount on deposit $ -
Income payable -
Ordinary - involving life contingencies
Amount on deposit $ -
Income payable 254,818
Group - not involving life contingencies
Amount on deposit $ -
Income payable -
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TALCOTT RESOLUTION LIFE AND ANNUITY INSURANCE COMPANY
SCHEDULE I - SELECTED FINANCIAL DATA
DECEMBER 31, 2025
Group - involving life contingencies
Amount on deposit $ -
Income payable -
Annuities:
Ordinary:
Immediate - amount of income payable $ 141,535,643
Deferred fully paid: account balance 759,590,435
Deferred not fully paid: account balance 17,827,822
Group:
Immediate - amount of income payable $ 17,899
Deferred fully paid: account balance 129,795,713
Deferred not fully paid: account balance -
Accident and health insurance-premiums in force:
Group $ -
Credit -
Other 130,831
Deposit funds and dividend accumulations:
Deposit funds - account balance $ 9,278,721
Dividend accumulations - account balance 1,394,797
Claim payments (in thousands):
Group accident and health
2025 -
2024 -
2023 -
2022 -
2021 -
Prior -
Other accident and health
2025 2
2024 2
2023 -
2022 -
2021 -
Prior 105
Other coverages that use development methods to calculate claim reserves
2025 -
2024 -
2023 -
2022 -
2021 -
Prior -


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TALCOTT RESOLUTION LIFE AND ANNUITY INSURANCE COMPANY
SCHEDULE II - SUMMARY INVESTMENT SCHEDULE
DECEMBER 31, 2025
Gross Investment Holdings Admitted Assets as Reported in the Annual Statement
Investment Categories Amount Percentage Amount Percentage
1. Issuer Credit Obligations
1.01 U.S. Government Obligations $519,262,120 11.40 $519,262,120 11.40
1.02 All Other Government Obligations 0 0.00 0 0.00
1.03 Non-U.S. Sovereign Jurisdiction Securities 29,053,199 0.60 29,053,199 0.60
1.04 Municipal Bonds - General Obligations (Direct & Guaranteed) 9,117,203 0.20 9,117,203 0.20
1.05 Municipal Bonds - special revenue 82,747,214 1.80 82,747,214 1.80
1.06 Project finance bonds issued by operating entities 2,753,452 0.10 2,753,452 0.10
1.07 Corporate bonds 1,432,988,390 31.20 1,432,988,390 31.30
1.08 Mandatory convertible bonds 0 0.00 0 0.00
1.09 Single entity backed obligations 43,674,468 1.00 43,674,468 1.00
1.10 SVO-Identified bond exchange traded funds - fair value 0 0.00 0 0.00
1.11 SVO-Identified bond exchange traded funds - systematic value 0 0.00 0 0.00
1.12 Bonds Issued By Funds Representing Operating Entities 50,652,477 1.10 50,652,477 1.10
1.18 Total Issuer Credit Obligations 2,170,248,523 47.40 2,170,248,523 47.50
2. Asset-backed securities
2.01 Asset-backed securities, Financial asset-backed securities - self liquidating 803,673,344 17.60 803,673,344 17.60
2.02 Asset-backed securities, Financial asset-backed securities - not self-liquidating 0 0.00 0 0.00
2.03 Asset-backed securities, Non-financial asset-backed securities 19,040,279 0.40 19,040,279 0.40
2.04 Total Asset-backed Securities 822,713,623 18.00 822,713,623 18.00
3. Preferred Stocks
3.01 Preferred Stocks, Industrial and Miscellaneous (Unaffiliated) 1,850,888 0.00 1,850,888 0.00
3.02 Preferred Stocks, Parent, Subsidiaries and Affiliates 0 0.00 0 0.00
3.03 Total Preferred Stocks 1,850,888 0.00 1,850,888 0.00
4. Common Stocks
4.01 Common stocks, Industrial and miscellaneous - publicly traded (unaffiliated) 0 0.00 0 0.00
4.02 Common stocks, Industrial and miscellaneous - other (unaffiliated) 3,002,401 0.10 3,002,401 0.10
4.04 Common stocks, Parent, subsidiaries and affiliates - other 16,142,964 0.30 0 0.00
4.05 Common Stocks, Mutual Funds 6,883,770 0.20 6,883,770 0.20
4.09 Total Common Stocks 26,029,135 0.60 9,886,171 0.30
5. Mortgage Loans
5.01 Farm Mortgages 0 0.00 0 0.00
5.02 Residential Mortgages 0 0.00 0 0.00
5.03 Commercial Mortgages 577,794,520 12.60 577,794,520 12.70
5.04 Mezzanine Real Estate Loans 0 0.00 0 0.00
5.05 Total Valuation Allowance 0 0.00 0 0.00
5.06 Total Mortgage Loans 577,794,520 12.60 577,794,520 12.70
6. Real Estate
6.01 Properties Occupied by Company 0 0.00 0 0.00
6.02 Properties Held for Production of Income 0 0.00 0 0.00
6.03 Properties Held for Sale 0 0.00 0 0.00
6.04 Total Real Estate 0 0.00 0 0.00
7. Cash, Cash Equivalents, and Short-Term Investments::
7.01 Cash 73,049,108 1.60 73,049,108 1.60
7.02 Cash Equivalents 121,559,149 2.70 121,559,149 2.70
7.03 Short-Term Investments 946,323 0.00 946,323 0.00
6.04 Total Cash, Cash Equivalents, and Short-Term Investments 195,554,580 4.30 195,554,580 4.30
8. Contract Loans 86,985,968 1.90 86,985,968 1.90
9. Derivatives 48,296,942 1.10 48,296,942 1.10
10. Other Invested Assets 603,880,764 13.20 603,880,764 13.30
11. Receivables for Securities 1,213,653 0.00 1,139,524 0.00
12. Securities Lending 0 0.00 0 0.00
13. Other Invested Assets 39,094,280 0.90 39,094,280 0.90
14. Total Invested Assets $4,573,662,876 100.00 $4,557,445,783 100.00
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TALCOTT RESOLUTION LIFE AND ANNUITY INSURANCE COMPANY
SCHEDULE IV - SUPPLEMENTAL SCHEDULE OF REINSURANCE CONTRACTS WITH RISK-LIMITING FEATURES
DECEMBER 31, 2025

Reinsurance Credit
1. The Company has no reinsurance contracts (or multiple contracts with the same reinsurer or its affiliates) subject to A-791 that include a provision, which limits the reinsurer's assumption of significant risks identified as in A-791.
2. The Company has 9 reinsurance contracts (or multiple contracts with the same reinsurer or its affiliates) not subject to A-791, for which reinsurance accounting was applied that include a provision that limits the reinsurer's assumption of risk. Reinsurance credit was reduced for the risk limiting features in all cases.
3. The Company has no reinsurance contracts that contain features which result in delays in payment in form or in fact.
4. The Company has no reinsurance accounting credits for contracts not subject to A-791 and not yearly renewable term, which meet the risk transfer requirements of SSAP No. 61R.
5. The Company has not ceded any risk which is not subject to A-791 and not yearly renewable term reinsurance, under any reinsurance contract (or multiple contracts with the same reinsurer or its affiliates) during the period covered by the financial statement which is either: (i) accounted for as reinsurance under statutory accounting principles ("SAP") and as a deposit under generally accepted accounting principles ("GAAP") or (ii) accounted for as reinsurance under GAAP and a deposit under SAP.
6. Not applicable.
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Talcott Resolution Life & Annuity Insurance Separate Account Ten Co. published this content on April 20, 2026, and is solely responsible for the information contained herein. Distributed via EDGAR on April 20, 2026 at 15:52 UTC. If you believe the information included in the content is inaccurate or outdated and requires editing or removal, please contact us at [email protected]