Investment Committee — Financial Package
Consolidated financial statements and supporting analysis, FY2023–FY2025
US$ thousands except ratios and per-unit measures
Net income growth is not operating. Pre-tax income declined $68.0mm; the $130.5mm income tax benefit is the release of a $190.8mm deferred tax valuation allowance and is non-recurring. On a comprehensive basis earnings fell 8.0%.
The company writes limited-payment and deposit-type business. Premium is recognised at cession and does not recur; period-over-period premium movement reflects transaction timing, not run-rate.
US$ thousands · years ended 31 December
| FY2023 | FY2024 | FY2025 | 25 v 24 | |
|---|---|---|---|---|
| Revenues | ||||
| Premiums | 613,058 | 3,203,257 | 8,104,708 | +153.0% |
| Product fees and charges | 44,050 | 38,720 | 33,444 | −13.6% |
| Net investment income | 994,497 | 1,376,656 | 1,794,639 | +30.4% |
| Investment related gains (losses) | 330,316 | 243,090 | 406,058 | +67.0% |
| Other income | — | — | 6,226 | n/m |
| Total revenues | 1,981,921 | 4,861,723 | 10,345,075 | +112.8% |
| Benefits and expenses | ||||
| Insurance policy benefits | 462,443 | 3,023,761 | 7,881,351 | +160.6% |
| Interest credited to policyholder account balances | 507,888 | 854,098 | 1,007,850 | +18.0% |
| Policy expenses | 252,388 | 429,719 | 896,792 | +108.7% |
| Amortization of deferred acquisition costs | 73,734 | 123,355 | 144,920 | +17.5% |
| Interest and debt expense | 15,858 | 25,282 | 34,048 | +34.7% |
| Operating expenses | 27,380 | 41,018 | 60,166 | +46.7% |
| Change in fair value of market risk benefits, net | (27,698) | (85) | 23,375 | n/m |
| Total benefits and expenses | 1,311,993 | 4,497,148 | 10,048,502 | +123.4% |
| Income before income taxes | 669,928 | 364,575 | 296,573 | −18.7% |
| Income tax benefit (expense) | — | (2,153) | 130,514 | n/m |
| Net income | 669,928 | 362,422 | 427,087 | +17.8% |
| Less: attributable to non-controlling interests | — | — | (933) | n/m |
| Net income attributable to shareholder | 669,928 | 362,422 | 428,020 | +18.1% |
| Other comprehensive income (loss), net of tax | ||||
| Unrealized gain (loss) on AFS securities | — | (8,380) | 9,014 | n/m |
| Change in policy benefits from discount rate | — | 51,275 | (58,906) | n/m |
| Change in MRB from instrument-specific credit risk | — | (3,577) | (7,452) | n/m |
| Total other comprehensive income (loss) | (24,083) | 39,318 | (57,344) | n/m |
| Comprehensive income | 645,845 | 401,740 | 369,743 | −8.0% |
| FY2024 | FY2025 | Change | |
|---|---|---|---|
| Premiums less insurance policy benefits | 179,496 | 223,357 | +43,861 |
| Net investment income less interest credited | 522,558 | 786,789 | +264,231 |
| Investment related gains | 243,090 | 406,058 | +162,968 |
| Policy expenses | (429,719) | (896,792) | −467,073 |
| DAC amortization, interest, operating, MRB | (189,570) | (262,509) | −72,939 |
| Product fees and other income | 38,720 | 39,670 | +950 |
| Income before income taxes | 364,575 | 296,573 | −68,002 |
Policy expenses are the swing item. The $467.1mm increase exceeds the $427.2mm improvement in net investment income after credited interest. As a share of premium policy expenses fell from 13.4% to 11.1%, but in dollar terms this single line converted a doubling of revenue into a decline in pre-tax income.
| FY2024 | FY2025 | Change | |
|---|---|---|---|
| Net investment income / average total investments | 5.93% | 5.50% | −43 bp |
| Interest credited / average policyholder account balances | 4.06% | 4.13% | +7 bp |
| Indicative net spread | 1.86% | 1.37% | −49 bp |
| Weighted-average crediting rate, deferred annuities (disclosed) | 4.16% | 4.69% | +53 bp |
| Operating expenses / average total assets | 0.17% | 0.18% | +1 bp |
| Pre-tax return on average equity | 47.6% | 17.6% | −30.0 pp |
| Net income return on average equity | 47.3% | 25.4% | −21.9 pp |
Spread is indicative only. Net investment income is earned across the whole invested base including assets backing pension risk transfer liabilities, while interest credited applies solely to deferred annuity account balances. The disclosed weighted-average crediting rate on deferred annuities rose 53 bp, a larger move than the blended measure implies.
US$ thousands · as of 31 December
| 2024 | 2025 | Change | % | |
|---|---|---|---|---|
| Assets | ||||
| Fixed maturity securities, AFS, at fair value | 1,145,052 | 3,129,381 | 1,984,329 | +173.3% |
| Equity securities, at fair value | 45,342 | 35,403 | (9,939) | −21.9% |
| Policy loans | 22,322 | 20,048 | (2,274) | −10.2% |
| Other investments, at fair value | 138,111 | 431,660 | 293,549 | +212.5% |
| Mortgage loans, at amortized cost | 40,943 | 192,353 | 151,410 | +369.8% |
| Funds withheld at interest, at fair value | 26,020,803 | 34,041,928 | 8,021,125 | +30.8% |
| Total investments | 27,412,573 | 37,850,773 | 10,438,200 | +38.1% |
| Cash and cash equivalents (incl. restricted) | 497,185 | 450,900 | (46,285) | −9.3% |
| Real estate — consolidated VIEs | — | 202,201 | 202,201 | n/m |
| Accrued investment income | 8,236 | 31,650 | 23,414 | +284.3% |
| Deferred acquisition costs | 506,290 | 556,836 | 50,546 | +10.0% |
| Net deferred tax asset | — | 143,838 | 143,838 | n/m |
| Market risk benefit assets | 12,019 | 9,340 | (2,679) | −22.3% |
| Reinsurance recoverable | 1,306 | 9,564 | 8,258 | n/m |
| Income taxes receivable | 10,138 | 8,956 | (1,182) | −11.7% |
| Intercompany receivable | 85 | 62 | (23) | −27.1% |
| Other assets | 663,366 | 89,915 | (573,451) | −86.4% |
| Total assets | 29,111,198 | 39,354,035 | 10,242,837 | +35.2% |
| Liabilities | ||||
| Policy benefit reserves | 3,366,998 | 10,893,152 | 7,526,154 | +223.5% |
| Policyholder account balances | 23,732,443 | 25,075,097 | 1,342,654 | +5.7% |
| Market risk benefit liabilities | 289,322 | 322,689 | 33,367 | +11.5% |
| Long-term debt | 441,000 | 576,120 | 135,120 | +30.6% |
| Accounts payable and other accrued expenses | 19,652 | 28,208 | 8,556 | +43.5% |
| Intercompany payable | 20,365 | 17,225 | (3,140) | −15.4% |
| Other liabilities | 96,448 | 223,870 | 127,422 | +132.1% |
| Total liabilities | 27,966,228 | 37,136,361 | 9,170,133 | +32.8% |
| Equity | ||||
| Common stock — $1 par, 250,000 shares | 250 | 250 | — | — |
| Additional paid-in capital | 2,047,282 | 2,738,257 | 690,975 | +33.8% |
| Accumulated other comprehensive income (loss) | 11,747 | (45,597) | (57,344) | n/m |
| Retained earnings (accumulated deficit) | (914,309) | (486,289) | 428,020 | +46.8% |
| Total shareholder's equity | 1,144,970 | 2,206,621 | 1,061,651 | +92.7% |
| Non-controlling interests | — | 11,053 | 11,053 | n/m |
| Total equity | 1,144,970 | 2,217,674 | 1,072,704 | +93.7% |
Funds withheld at interest is 89.9% of total investments and 86.5% of total assets. The directly held book — investments the company owns outright and can trade — is $3,808,845, or 10.1% of total investments. Retained earnings remain in deficit at $(486,289) against an accumulated deficit of $(1,946,659) at YE2022, reflecting the day-one loss on the original MassMutual Ascend cession; at the FY2025 run-rate the deficit clears during 2026.
US$ thousands · years ended 31 December
| FY2024 | FY2025 | |
|---|---|---|
| Operating activities | ||
| Net income | 362,422 | 427,087 |
| Amortization of deferred acquisition costs | 123,355 | 144,920 |
| Investment related (gains) losses | (243,090) | (406,058) |
| Deferred income tax benefit | — | (131,697) |
| Change in market risk benefits | (85) | 23,375 |
| Depreciation and debt issuance amortization — VIEs | — | 9,342 |
| Other | 83,009 | (72,927) |
| Change in funds withheld at interest | (1,065,920) | (641,127) |
| Policyholder account balances | 819,514 | 976,004 |
| Policy benefit reserves | 181,054 | 152,737 |
| Deferred acquisition costs | (250,880) | (195,466) |
| Other operating assets and liabilities | (677) | 72,644 |
| Net cash provided by operating activities | 8,702 | 358,834 |
| Investing activities | ||
| Purchase of fixed maturity securities, AFS | (761,261) | (1,744,446) |
| Sales, maturities and repayments — AFS | 397,327 | 974,492 |
| Purchase of other investments | (49,448) | (302,984) |
| Sale of other investments | 36,602 | 75,647 |
| Purchase of mortgage loans | (34,547) | (128,108) |
| Sales, maturities and repayments — mortgage loans | 23,074 | 79,171 |
| Purchase of equity securities | (6,189) | (58,688) |
| Sale of equity securities | — | 70,985 |
| Acquisition of real estate — VIEs | — | (211,285) |
| Change in policy loans, net | 2,557 | 2,274 |
| Short-term loan to parent, net | — | — |
| Net cash used in investing activities | (391,885) | (1,242,942) |
| Financing activities | ||
| Capital contributions | 606,540 | 690,975 |
| Return of capital | (250,000) | — |
| Issuance of long-term debt | 220,000 | — |
| Proceeds from mortgage loan payable — VIEs | — | 138,102 |
| Debt issuance costs paid — VIEs | — | (3,240) |
| Capital contributions from non-controlling interests | — | 12,116 |
| Distributions to non-controlling interests | — | (130) |
| Net cash provided by financing activities | 576,540 | 837,823 |
| Net increase (decrease) in cash | 193,357 | (46,285) |
| Cash and cash equivalents, beginning of year | 303,828 | 497,185 |
| Cash and cash equivalents, end of year | 497,185 | 450,900 |
| FY2024 | FY2025 | |
|---|---|---|
| Cash paid for interest | 26,768 | 31,913 |
| Cash paid for income taxes | — | — |
| Day one deposits on insurance contracts under funds withheld | 2,696,925 | 7,310,108 |
| Day one assets and liabilities assumed through coinsurance and modco FWH | 2,696,925 | 7,310,108 |
| Assets and accrued investment income transferred on conversion of funds withheld to coinsurance | — | 1,251,533 |
| Deposits on policyholder account balances within funds withheld | 7,973,188 | 4,849,709 |
| Withdrawals on policyholder account balances within funds withheld | 3,386,975 | 4,483,059 |
Cash flow understates activity by design. The economically significant movements are non-cash: $7.31bn of day-one assets and liabilities assumed, and the $1.25bn asset transfer on the MMLIC MR23 conversion from funds withheld to coinsurance effective 1 October 2025. Within funds withheld, deposits fell from $7.97bn to $4.85bn while withdrawals rose from $3.39bn to $4.48bn — net deposit flow inside the withheld pools compressed from +$4.59bn to +$0.37bn.
US$ · ceded premium per counterparty statutory Schedule S Part 3 Section 1
| Cedant / treaty | Form | FY2024 | FY2025 |
|---|---|---|---|
| Recognised as GAAP premium — limited-payment / life-contingent | |||
| Metropolitan Life Insurance Company | ModCo | — | 5,734,245,483 |
| Metropolitan Tower Life | ModCo | 1,784,998,118 | 1,279,520,986 |
| MMLIC — MR24 SPIA/DIA | Coinsurance | 382,420,048 | 563,093,950 |
| MMLIC — MR23 PRT | Coins. FWH → coins. | 807,831,117 | 389,867,068 |
| MassMutual Ascend | Coins. FWH | 32,105,434 | 22,038,541 |
| Identified GAAP-recognised premium | 3,007,354,717 | 7,988,766,028 | |
| Martello gross premiums per Note 7 | 2,963,827,000 | 7,978,606,000 | |
| Variance | 43,527,717 | 10,160,028 | |
| Reconciliation to income statement premium line | 3,203,257,000 | 8,104,708,000 | |
| Deposit-accounted — no GAAP premium recognised | |||
| MMLIC — MR22 MYGA / deferred annuity flow | Coins. FWH | 7,614,936,884 | 4,393,798,165 |
| Total statutory ceded premium, all forms | 10,622,291,601 | 12,382,564,193 | |
The FY2025 bridge closes to 0.13% against Note 7 gross premiums, confirming the disclosed cedant set is complete. MMLIC's MR22 treaty contributed $4.39bn of statutory ceded premium and nil GAAP revenue — deferred annuity business is deposit-accounted, with consideration flowing to policyholder account balances rather than the income statement.
| Cedant | Reserve credit / ModCo | Share |
|---|---|---|
| MMLIC — MR22, MR23, MR24 combined | 22,252,208,176 | 60.1% |
| MassMutual Ascend | 5,773,720,176 | 15.6% |
| Metropolitan Life Insurance Company | 5,769,339,610 | 15.6% |
| Metropolitan Tower Life | 3,201,532,293 | 8.7% |
| Total ceded reserves | 36,996,800,255 | 100.0% |
| Technical provisions per FY2025 FCR (EBS) | 36,151,000,000 | |
| Variance — statutory vs EBS basis | 845,800,255 | 2.3% |
US$ thousands · as of and for the years ended 31 December
| MMALIC SPIA | PRT | MMLIC SPIA/DIA | Total | |
|---|---|---|---|---|
| Adjusted balance at 31 December 2024, original discount rate² | 111,310 | 2,901,562 | 376,046 | 3,388,918 |
| Issuances | 15,112 | 7,050,295 | 529,996 | 7,595,403 |
| Interest accrual | 3,605 | 211,473 | 31,443 | 246,521 |
| Benefit payments | (16,621) | (362,333) | (25,565) | (404,519) |
| Ending balance at original discount rate | 113,406 | 9,800,997 | 911,920 | 10,826,323 |
| Effect of change in discount rate assumptions | (9,063) | 32,776 | (3,547) | 20,166 |
| Deferred profit liability | 3,053 | — | 43,610 | 46,663 |
| Liability per balance sheet, 31 December 2025 | 107,396 | 9,833,773 | 951,983 | 10,893,152 |
| Comparative, 31 December 2024 | 102,652 | 2,891,243 | 373,103 | 3,366,998 |
² Opening balance of $3,387,887 at original discount rate, after $10,383 of cash-flow assumption changes and $(9,352) of actual-vs-expected variances. PRT issuances of $7.05bn drove the entire increase. Pension risk transfer is now 90.3% of policy benefit reserves, against 85.9% a year earlier.
| Deferred annuities | MMALIC SPIA | MMLIC SPIA/DIA | Total | |
|---|---|---|---|---|
| Balance at 31 December 2024 | 23,464,004 | 128,962 | 139,477 | 23,732,443 |
| Issuances | 3,972,748 | 37,089 | 258,878 | 4,268,715 |
| Premiums received | 580,994 | — | — | 580,994 |
| Surrenders and withdrawals | (3,896,423) | — | — | (3,896,423) |
| Free look surrenders | (155,458) | — | — | (155,458) |
| Benefit payments | (358,705) | (44,804) | (28,847) | (432,356) |
| Policy charges | (30,270) | — | — | (30,270) |
| Interest credited | 993,455 | 2,527 | 10,292 | 1,006,274 |
| Other | 1,178 | — | — | 1,178 |
| Balance at 31 December 2025 | 24,571,523 | 123,774 | 379,800 | 25,075,097 |
| Weighted-average crediting rate | 4.69% | — | — | 4.69% |
| Net amount at risk | 1,306,481 | — | — | 1,306,481 |
| Cash surrender value | 23,387,300 | — | — | 23,387,300 |
Issuances fell from $7,222,184 to $3,972,748 (−45.0%) while surrenders and withdrawals rose from $2,800,448 to $3,896,423 (+39.1%). Net deposit flow before credited interest fell from +$4,410,061 in FY2024 to +$112,886 in FY2025. The block grew $1,107,519, of which $993,455 — approximately 90% — was credited interest rather than new business.
Cash surrender value of $23,387,300 is 95.2% of the deferred annuity balance, and the crediting rate rose 53 bp to 4.69%. Surrender pressure and repricing are both increasing.
| MMALIC SPIA | PRT | MMLIC SPIA/DIA | |
|---|---|---|---|
| Interest accretion rate — FY2025 | 3.61% | 5.24% | 5.48% |
| Current discount rate — FY2025 | 4.92% | 5.19% | 5.52% |
| Weighted-average liability duration (years) | 6.37 | 7.88 | 12.14 |
| Mortality — actual experience FY2025 | 9.16% | 1.74% | 0.28% |
| Mortality — expected experience FY2025 | 4.60% | 1.42% | 1.45% |
| Undiscounted expected future benefit payments | 146,212 | 16,085,425 | 2,049,768 |
Mortality is running favourably on the payout books — higher actual than expected mortality reduces future annuity payments — with MMALIC SPIA at 9.16% against 4.60% expected and PRT at 1.74% against 1.42%. MMLIC SPIA/DIA is adverse at 0.28% against 1.45% expected, on the longest-duration liability at 12.14 years.
| 2024 | 2025 | |
|---|---|---|
| Market risk benefit liabilities | 289,322 | 322,689 |
| less market risk benefit assets | (12,019) | (9,340) |
| Net market risk benefit position | 277,303 | 313,349 |
| Surplus note issued 28-Jun-2022, due 28-Jun-2027, SOFR + 2.00% | 221,000 | 221,000 |
| Surplus note issued 28-Jun-2024, due 28-Jun-2027, SOFR + 2.25% | 220,000 | 220,000 |
| Mortgage loan payable — consolidated VIEs | — | 135,120 |
| Total long-term debt | 441,000 | 576,120 |
| Letters of credit issued (off balance sheet) | 250,000 | 750,000 |
| Letters of credit drawn | 75,000 | 750,000 |
| Unfunded investment commitments | 43,910 | 229,687 |
US$ thousands unless noted · as of 31 December
| 2024 | % of total | 2025 | % of total | |
|---|---|---|---|---|
| Funds withheld at interest — cedant-held pools | 26,020,803 | 94.9% | 34,041,928 | 89.9% |
| Fixed maturity securities, AFS | 1,145,052 | 4.2% | 3,129,381 | 8.3% |
| Other investments | 138,111 | 0.5% | 431,660 | 1.1% |
| Mortgage loans | 40,943 | 0.1% | 192,353 | 0.5% |
| Equity securities | 45,342 | 0.2% | 35,403 | 0.1% |
| Policy loans | 22,322 | 0.1% | 20,048 | 0.1% |
| Total investments | 27,412,573 | 100.0% | 37,850,773 | 100.0% |
| Directly held book, excluding funds withheld | 1,391,770 | 5.1% | 3,808,845 | 10.1% |
| OC Trust and Coinsurance Trust collateral held | 878,667 | 3,109,506 |
| 2024 amort. cost | 2024 fair value | 2025 amort. cost | 2025 fair value | |
|---|---|---|---|---|
| Corporate | 763,755 | 722,840 | 1,627,767 | 1,614,213 |
| ABS | 161,570 | 159,951 | 833,218 | 833,036 |
| RMBS | 149,929 | 147,635 | 381,963 | 383,070 |
| CLO | 50,583 | 51,075 | 128,296 | 127,797 |
| CMBS | 30,535 | 30,843 | 107,769 | 108,442 |
| U.S. government | 3,021 | 2,583 | 36,860 | 36,096 |
| Residual tranche CLO and ABS, fair value option | 2,312 | 19,674 | 24,676 | 24,383 |
| State and municipal | 10,200 | 10,451 | 2,630 | 2,344 |
| Total AFS securities | 1,171,905 | 1,145,052 | 3,143,179 | 3,129,381 |
| Gross unrealized losses | (25,575) | (36,960) | ||
| Allowance for credit losses | (24,727) | (250) |
Contractual maturity has extended sharply: assets due after ten years rose from $243,618 to $1,090,856 of amortized cost, and now represent 34.7% of the AFS book against 20.8% a year earlier — consistent with backing long-dated pension risk transfer liabilities.
| Total | NAV | Level 1 | Level 2 | Level 3 | |
|---|---|---|---|---|---|
| Funds withheld at interest — 2025 | 34,041,928 | 441,077 | 478,359 | 31,989,749 | 1,132,743 |
| as % of funds withheld | 100.0% | 1.3% | 1.4% | 94.0% | 3.3% |
| Funds withheld at interest — 2024 | 26,020,803 | 312,118 | 399,222 | 24,466,612 | 842,851 |
| as % of funds withheld | 100.0% | 1.2% | 1.5% | 94.0% | 3.2% |
| Total AFS securities — 2025 | 3,129,381 | — | — | 2,991,076 | 138,305 |
| Total assets measured at fair value — 2025 | 38,098,612 | 689,619 | 676,407 | 35,284,583 | 1,448,003 |
Level 3 exposure within funds withheld is stable at 3.3%. Observability of the withheld pools is disclosed, but their security-level composition is not — see below.
US$ millions · the Funds Withheld Adjustment column is substantially the Martello pool
| Asset class | YE2023 | % | YE2024 | % | YE2025 | % |
|---|---|---|---|---|---|---|
| Corporate bonds | 3,695 | 38.3% | 2,215 | 30.6% | 1,780 | 31.4% |
| Other ABS including CLOs | 2,279 | 23.6% | 1,606 | 22.2% | 1,053 | 18.6% |
| RMBS | 1,362 | 14.1% | 1,239 | 17.1% | 883 | 15.6% |
| CMBS | 759 | 7.9% | 643 | 8.9% | 516 | 9.1% |
| Mortgage loans and real estate | 536 | 5.6% | 786 | 10.9% | 623 | 11.0% |
| Schedule BA assets | 315 | 3.3% | 454 | 6.3% | 302 | 5.3% |
| U.S. government, agencies, municipals | 115 | 1.2% | 76 | 1.0% | 283 | 5.0% |
| Cash and short-term | 548 | 5.7% | 195 | 2.7% | 188 | 3.3% |
| Stocks | 28 | 0.3% | 25 | 0.3% | 47 | 0.8% |
| Total cash and invested assets | 9,637 | 100% | 7,240 | 100% | 5,674 | 100% |
| MM Ascend | MMLIC | Met Tower | Met Life | |
|---|---|---|---|---|
| NAIC 1 | 3,065,707,844 | 19,143,529,320 | 9,340,719,467 | 12,157,554,884 |
| NAIC 2 | 1,163,193,313 | 9,677,008,865 | 5,619,360,936 | 7,259,525,114 |
| NAIC 3 | 181,086,547 | 1,764,123,741 | 288,960,730 | 411,880,083 |
| NAIC 4 | 36,882,985 | 154,960,082 | 30,709,763 | 57,245,211 |
| NAIC 5 | 55,679,161 | 165,929,715 | 5,564,044 | 7,891,883 |
| NAIC 6 | 11,642,566 | 98,415,077 | 702,528 | 16,591,693 |
| Total ceded long-term bonds | 4,514,192,416 | 31,003,966,800 | 15,286,017,468 | 19,910,688,868 |
| Below investment grade | 6.3% | 7.0% | 2.1% | 2.5% |
| Martello share of the sub-pool it sits in¹ | ~100% | 64.1% | ~17% | 15.1% |
Below-investment-grade exposure is 6.3–7.0% in the MassMutual funds-withheld pools, where General Interrogatory 29.05 discloses Centerbridge Martello Advisors LLC and Barings LLC as holding authority to make investment decisions, and 2.1–2.5% in the MetLife modified coinsurance pools, where the cedant retains asset management. Roughly a three-times differential.
On the Ascend series the below-investment-grade share has fallen from 8.5% (YE2023) to 8.4% (YE2024) to 6.3% (YE2025) — de-risking through the runoff, though remaining materially above the MetLife pools throughout.
¹ Martello sits in the funds-withheld sub-pool at the MassMutual cedants (MMLIC share measured against ceded FWH of $30.41bn per line 163) and in the ModCo sub-pool at the MetLife cedants (MLIC share against ceded ModCo of $38.29bn). The quality rows above span both sub-pools, so for the three blended cedants they include assets backing other reinsurers alongside Martello.
Disclosure limits. No security-level view of the withheld portfolios exists at any cedant. Ascend is the only unblended Martello pool. MMLIC publishes neither a funds-withheld supplement nor Schedule D Parts 3, 4 or 5, so no asset or transaction detail is available for the largest single reserve relationship at $22.25bn.
Bermuda Monetary Authority economic balance sheet basis · US$ millions except ratios
| 2025 | 2024 | Change | |
|---|---|---|---|
| Statutory capital — EBS | 2,771 | 2,138 | +633 |
| Minimum solvency margin | 598 | 449 | +149 |
| Transition enhanced capital requirement | 1,549 | 1,028 | +521 |
| ECR ratio | 179% | 208% | −29 pp |
| Best estimate liabilities — scenario-based approach | 35,952 | 26,313 | +9,639 |
| Risk margin at 6% cost of capital | 179 | 98 | +81 |
| Technical provisions | 36,151 | 26,411 | +9,740 |
| Statutory capital and surplus, unconsolidated (US$000) | 3,281,268 | 2,226,073 | +1,055,195 |
| Tier 2 ancillary capital (US$000) | 636,625 | 221,000 | +415,625 |
| Tier 3 ancillary capital (US$000) | 220,000 | — | +220,000 |
The enhanced capital requirement grew 50.7% against statutory capital growth of 29.6%, driving the ECR ratio down 29 points. Ancillary capital rose from $221.0mm to $856.6mm across Tiers 2 and 3, and drawn letters of credit went from $75.0mm to $750.0mm. The balance sheet absorbed the MLIC block faster than own-funds formation.
Statutory capital and surplus: the FY2025 FCR reports $3,282,693 thousand against $3,281,268 thousand in the audited statements, a difference of $1,425 thousand. Surplus note attribution: the FCR ancillary table assigns $221,000 to the June 2024 note and $220,000 to the June 2022 note; GAAP Note 9 reverses this. Totals agree at $441,000. Both are presented as reported and are not reconciled here.