| Liability for Future Policy Benefit, Activity |
The following table summarizes balances and changes in the LFPB. | | | | | | | | | | | | | | (In millions) | 2025 | | 2024 | | Present value of future net premiums | | | | | Balance, January 1 | $ | 3,425 | | | $ | 3,710 | | | Effect of changes in discount rate | (7) | | | (125) | | | Balance, January 1, at original locked in discount rate | 3,418 | | | 3,585 | | Effect of changes in cash flow assumptions (1) | — | | | — | | Effect of actual variances from expected experience (1) | 5 | | | (28) | | | Adjusted balance, January 1 | 3,423 | | | 3,557 | | | Interest accrual | 44 | | | 47 | | | Net premiums: earned during period | (101) | | | (107) | | | Balance, end of period at original locked in discount rate | 3,366 | | | 3,497 | | | Effect of changes in discount rate | 38 | | | 56 | | Balance, March 31 | $ | 3,404 | | | $ | 3,553 | | | | | | | | Present value of future benefits & expenses | | | | | Balance, January 1 | $ | 16,583 | | | $ | 17,669 | | | Effect of changes in discount rate | 440 | | | (578) | | | Balance, January 1, at original locked in discount rate | 17,023 | | | 17,091 | | Effect of changes in cash flow assumptions (1) | — | | | — | | Effect of actual variances from expected experience (1) | 13 | | | (13) | | | Adjusted balance, January 1 | 17,036 | | | 17,078 | | | Interest accrual | 229 | | | 231 | | | Benefit & expense payments | (293) | | | (321) | | | Balance, end of period at original locked in discount rate | 16,972 | | | 16,988 | | | Effect of changes in discount rate | (264) | | | 78 | | Balance, March 31 | $ | 16,708 | | | $ | 17,066 | | | | | | | | | | | | | | | | | | | | | | | Net LFPB | $ | 13,304 | | | $ | 13,513 | |
(1) As of March 31, 2025 and 2024 the re-measurement gain (loss) of $(8) million and $(15) million presented parenthetically on the Condensed Consolidated Statement of Operations is comprised of the effect of changes in cash flow assumptions and the effect of actual variances from expected experience. The following table presents earned premiums and interest accretion associated with the Company’s long-term care business recognized on the Condensed Consolidated Statement of Operations. | | | | | | | | | | | | | | | | | Periods ended March 31 | | | Three Months | (In millions) | | | | | 2025 | | 2024 | | Earned premiums | | | | | $ | 106 | | | $ | 110 | | | Interest accretion | | | | | 185 | | | 184 | |
The following table presents undiscounted expected future benefit and expense payments, and undiscounted expected future gross premiums. | | | | | | | | | | | | | As of March 31 | (In millions) | 2025 | | 2024 | | Expected future benefit and expense payments | $ | 31,433 | | | $ | 32,474 | | | Expected future gross premiums | 5,089 | | | 5,270 | |
The weighted average interest rates in the table below are calculated based on the rate used to discount all future cash flows. | | | | | | | | | | | | | | | | | | | As of March 31 | | As of December 31 | | 2025 | | 2024 | | 2024 | | Original locked in discount rate | 5.19 | % | | 5.22 | % | | 5.20 | % | | Upper-medium grade fixed income instrument discount rate | 5.40 | | | 5.20 | | | 5.51 | |
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