| Schedule of Liability for Future Policy Benefit |
The following table summarizes balances and changes in the LFPB:
| | | | | | | | | | | | | 2025 | | 2024 | | (In millions) | | | | | | | | | 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 (a) | | | | | | Effect of actual variances from expected experience (a) | 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 (a) | | | | | | Effect of actual variances from expected experience (a) | 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, March 31 | $ | 13,304 | | | $ | 13,513 | |
| | | | | | | (a) | As of March 31, 2025 and 2024, the re-measurement loss of $8 million and $15 million presented parenthetically on the Consolidated Condensed 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 long-term care business recognized on the Condensed Consolidated Statement of Operations.
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | Three Months Ended March 31 | | | | 2025 | | 2024 | | (In millions) | | | | | | | | | | | | | | | | 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.
| | | | | | | | | | | | | March 31, | | 2025 | | 2024 | | | | | | (In millions) | | | | | | | | | 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.
| | | | | | | | | | | | | | | | | | | March 31, | | 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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