Policyholders' Account Balances

6 Months Ended

Jun. 30, 2025

Policyholder Account Balances, Future Policy Benefits and Claims and Separate Account Liabilities [Abstract]

LIABILITY FOR FUTURE POLICY BENEFITS

Liability for Future Policy Benefits primarily consists of the following sub-components, which are discussed in greater detail below:

•Benefit Reserves;

•Deferred Profit Liability (“DPL”); and

•Additional Insurance Reserves (“AIR”)

In 2025, the Company recognized a favorable impact to net income attributable to its annual reviews and update of assumptions and other refinements for Liability for Future Policy Benefits. The impact was favorable for direct and assumed Benefit Reserves and DPL, net of the impact of flooring these liabilities at zero for each issue year cohort, primarily due to updates to mortality assumptions in Individual Life Insurance, partially offset by unfavorable updates for morbidity in Long-Term Care (“LTC”) and mortality in Institutional Retirement Strategies. Additionally, there was a favorable impact for direct and assumed AIR, primarily due to offsetting impacts from updated policyholder behavior assumptions and mortality assumptions on universal life policies.

In 2024, the Company recognized a favorable impact to net income attributable to its annual reviews and update of assumptions and other refinements for Liability for Future Policy Benefits. The impact was favorable for direct and assumed Benefit Reserves and DPL, net of the impact of flooring these liabilities at zero for each issue year cohort, primarily due to updates to mortality assumptions in Institutional Retirement Strategies and LTC, partially offset by unfavorable updates to policyholder behavior assumptions on certain life policies in International Businesses. Additionally, there was an unfavorable impact for direct and assumed AIR, primarily due to updates to policyholder behavior assumptions on universal life policies with secondary guarantees in Individual Life.

Benefit Reserves

The balances of and changes in Benefit Reserves as of and for the periods indicated consist of the three tables presented below: Present Value of Expected Net Premiums rollforward, Present Value of Expected Future Policy Benefits rollforward, and Net Liability for Future Policy Benefits.


	Six Months Ended June 30, 2025
	Present Value of Expected Net Premiums
	Retirement Strategies		Individual Life		International Businesses		Corporate and Other
	Institutional		Term Life				Long-Term Care		Total
	(in millions)
Balance, BOP	$	72,526	$	10,724	$	45,851	$	2,854	$	131,955
Effect of cumulative changes in discount rate assumptions, BOP	14,545		578		2,599		132		17,854
Balance at original discount rate, BOP	87,071		11,302		48,450		2,986		149,809
Effect of assumption update	169		(241)		(1,072)		8		(1,136)
Effect of actual variances from expected experience and other activity	(79)		(100)		(467)		41		(605)
Adjusted balance, BOP	87,161		10,961		46,911		3,035		148,068
Issuances	8,991		406		1,477		0		10,874
Net premiums / considerations collected	(3,445)		(692)		(3,455)		(155)		(7,747)
Interest accrual	1,745		264		730		71		2,810
Foreign currency adjustment	8,819		0		2,193		0		11,012
Other adjustments	0		3		73		0		76
Balance at original discount rate, EOP	103,271		10,942		47,929		2,951		165,093
Effect of cumulative changes in discount rate assumptions, EOP	(15,153)		(384)		(2,984)		(86)		(18,607)
Balance, EOP	$	88,118	$	10,558	$	44,945	$	2,865	$	146,486
Other businesses, EOP									109
Total balance, EOP									$	146,595


	Six Months Ended June 30, 2025
	Present Value of Expected Future Policy Benefits
	Retirement Strategies		Individual Life		International Businesses		Corporate and Other
	Institutional		Term Life				Long-Term Care		Total
	(in millions)
Balance, BOP	$	151,484	$	18,996	$	135,485	$	11,178	$	317,143
Effect of cumulative changes in discount rate assumptions, BOP	20,182		1,134		17,834		1,548		40,698
Balance at original discount rate, BOP	171,666		20,130		153,319		12,726		357,841
Effect of assumption update	322		(392)		(1,013)		14		(1,069)
Effect of actual variances from expected experience and other activity	(120)		(137)		(563)		18		(802)
Adjusted balance, BOP	171,868		19,601		151,743		12,758		355,970
Issuances	8,991		406		1,477		0		10,874
Interest accrual	3,541		470		2,365		306		6,682
Benefit payments	(7,426)		(784)		(4,208)		(176)		(12,594)
Foreign currency adjustment	8,902		0		7,245		0		16,147
Other adjustments	30		(1)		171		0		200
Balance at original discount rate, EOP	185,906		19,692		158,793		12,888		377,279
Effect of cumulative changes in discount rate assumptions, EOP	(19,578)		(797)		(23,521)		(1,572)		(45,468)
Balance, EOP	$	166,328	$	18,895	$	135,272	$	11,316	$	331,811
Other businesses, EOP									1,704
Total balance, EOP									$	333,515


	Six Months Ended June 30, 2025
	Net Liability for Future Policy Benefits - Benefit Reserves
	Retirement Strategies		Individual Life		International Businesses		Corporate and Other
	Institutional		Term Life				Long-Term Care		Total
	(in millions)
Balance, EOP, pre-flooring	$	78,210	$	8,337	$	90,326	$	8,450	$	185,323
Flooring impact, EOP	106		0		80		0		186
Balance, EOP, post-flooring	78,316		8,337		90,406		8,450		185,509
Less: Reinsurance recoverables	5,039		576		341		0		5,956
Balance after reinsurance recoverables, EOP, post-flooring	$	73,277	$	7,761	$	90,065	$	8,450	$	179,553
Other businesses, EOP(1)									1,538
Total balance after reinsurance recoverables, EOP									$	181,091


	Six Months Ended June 30, 2024
	Present Value of Expected Net Premiums
	Retirement Strategies		Individual Life		International Businesses(2)		Corporate and Other
	Institutional		Term Life				Long-Term Care		Total
	(in millions)
Balance, BOP	$	71,407	$	11,274	$	55,431	$	3,286	$	141,398
Effect of cumulative changes in discount rate assumptions, BOP	11,869		228		1,218		16		13,331
Balance at original discount rate, BOP	83,276		11,502		56,649		3,302		154,729
Effect of assumption update	41		21		(863)		(276)		(1,077)
Effect of actual variances from expected experience and other activity	429		(131)		(1,347)		95		(954)
Adjusted balance, BOP	83,746		11,392		54,439		3,121		152,698
Issuances	11,192		418		1,788		0		13,398
Net premiums / considerations collected	(12,908)		(692)		(3,622)		(157)		(17,379)
Interest accrual	1,384		264		782		76		2,506
Foreign currency adjustment	(898)		0		(3,494)		0		(4,392)
Other adjustments	0		(3)		82		0		79
Balance at original discount rate, EOP	82,516		11,379		49,975		3,040		146,910
Effect of cumulative changes in discount rate assumptions, EOP	(15,077)		(590)		(2,579)		(128)		(18,374)
Balance, EOP	$	67,439	$	10,789	$	47,396	$	2,912	$	128,536
Other businesses, EOP									89
Total balance, EOP									$	128,625


	Six Months Ended June 30, 2024
	Present Value of Expected Future Policy Benefits
	Retirement Strategies		Individual Life		International Businesses(2)		Corporate and Other
	Institutional		Term Life				Long-Term Care		Total
	(in millions)
Balance, BOP	$	141,135	$	19,852	$	158,858	$	12,139	$	331,984
Effect of cumulative changes in discount rate assumptions, BOP	14,751		334		7,918		603		23,606
Balance at original discount rate, BOP	155,886		20,186		166,776		12,742		355,590
Effect of assumption update	(481)		21		(513)		(394)		(1,367)
Effect of actual variances from expected experience and other activity	483		(149)		(1,362)		95		(933)
Adjusted balance, BOP	155,888		20,058		164,901		12,443		353,290
Issuances	11,192		418		1,789		0		13,399
Interest accrual	3,003		470		2,371		303		6,147
Benefit payments	(6,317)		(795)		(5,069)		(155)		(12,336)
Foreign currency adjustment	(908)		0		(11,173)		0		(12,081)
Other adjustments	(63)		(10)		162		0		89
Balance at original discount rate, EOP	162,795		20,141		152,981		12,591		348,508
Effect of cumulative changes in discount rate assumptions, EOP	(20,163)		(1,108)		(16,763)		(1,445)		(39,479)
Balance, EOP	$	142,632	$	19,033	$	136,218	$	11,146	$	309,029
Other businesses, EOP									1,656
Total balance, EOP									$	310,685


	Six Months Ended June 30, 2024
	Net Liability for Future Policy Benefits - Benefit Reserves
	Retirement Strategies		Individual Life		International Businesses(2)		Corporate and Other
	Institutional		Term Life				Long-Term Care		Total
	(in millions)
Balance, EOP, pre-flooring	$	75,194	$	8,243	$	88,821	$	8,233	$	180,491
Flooring impact, EOP	46		0		44		0		90
Balance, EOP, post-flooring	75,240		8,243		88,865		8,233		180,581
Less: Reinsurance recoverables	5,098		671		345		0		6,114
Balance after reinsurance recoverables, EOP, post-flooring	$	70,142	$	7,572	$	88,520	$	8,233	$	174,467
Other businesses, EOP(1)									1,506
Total balance after reinsurance recoverables, EOP									$	175,973

__________

(1)Reflects balance after reinsurance recoverables of $58 million and $63 million at June 30, 2025 and 2024, respectively.

(2)Prior period amounts have been updated to conform to current period presentation.

The following tables provide supplemental information related to the balances of and changes in Benefit Reserves included in the disaggregated tables above, on a gross (direct and assumed) basis, as of and for the period indicated:


	Six Months Ended June 30, 2025

	Retirement Strategies			Individual Life			International Businesses			Corporate and Other
	Institutional			Term Life						Long-Term Care
	($ in millions)
Undiscounted expected future gross premiums	$	178,217		$	22,958		$	107,923		$	6,588
Discounted expected future gross premiums (at original discount rate)	$	111,292		$	15,586		$	84,598		$	4,427
Discounted expected future gross premiums (at current discount rate)	$	94,675		$	15,086		$	79,680		$	4,308
Undiscounted expected future benefits and expenses	$	302,365		$	30,430		$	260,920		$	29,531
Weighted-average duration of the liability in years (at original discount rate)	8			10			17			16
Weighted-average duration of the liability in years (at current discount rate)	8			9			14			15
Weighted-average interest rate (at original discount rate)	4.76		%	5.12		%	2.99		%	4.91		%
Weighted-average interest rate (at current discount rate)	5.45		%	5.37		%	4.05		%	5.87		%


	Six Months Ended June 30, 2024

	Retirement Strategies			Individual Life			International Businesses(1)			Corporate and Other
	Institutional			Term Life						Long-Term Care
	($ in millions)
Undiscounted expected future gross premiums	$	133,585		$	22,965		$	110,571		$	6,823
Discounted expected future gross premiums (at original discount rate)	$	89,770		$	15,208		$	87,022		$	4,521
Discounted expected future gross premiums (at current discount rate)	$	71,759		$	14,451		$	83,062		$	4,339
Undiscounted expected future benefits and expenses	$	255,559		$	31,103		$	254,271		$	29,860
Weighted-average duration of the liability in years (at original discount rate)	9			10			18			17
Weighted-average duration of the liability in years (at current discount rate)	8			9			16			16
Weighted-average interest rate (at original discount rate)	4.72		%	5.15		%	3.02		%	4.91		%
Weighted-average interest rate (at current discount rate)	5.56		%	5.53		%	3.61		%	5.77		%

__________

(1)Prior period amounts have been updated to conform to current period presentation.

For additional information regarding observable market information and the techniques used to determine the interest rate assumptions seen above, see Note 2 to the Consolidated Financial Statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2024.

For non-participating traditional and limited-payment products, if a cohort is in a loss position where the liability for future policy benefits plus the present value of expected future gross premiums are determined to be insufficient to provide for the present value of expected future policy benefits and non-level claim settlement expenses, then the liability for future policy benefits is adjusted at that time, and thereafter, such that all changes, both favorable and unfavorable, in expected benefits resulting from both actual experience deviations and changes in future assumptions are recognized immediately as a gain or loss respectively.

For both the first six months of 2025 and 2024, there was an immaterial impact to net income for non-participating traditional and limited-payment products, where net premiums exceeded gross premiums for certain issue-year cohorts.

Deferred Profit Liability

The balances of and changes in DPL as of and for the period indicated are as follows:


	Six Months Ended June 30, 2025
	Deferred Profit Liability
	Retirement Strategies		International Businesses
	Institutional				Total
	(in millions)
Balance, BOP, post-flooring	$	5,670	$	9,354	$	15,024
Less: Flooring impact, BOP	0		2		2
Balance, BOP, pre-flooring	5,670		9,352		15,022
Effect of assumption update	(73)		(58)		(131)
Effect of actual variances from expected experience and other activity	30		2		32
Adjusted balance, BOP	5,627		9,296		14,923
Profits deferred	85		1,265		1,350
Interest accrual	116		172		288
Amortization	(288)		(1,055)		(1,343)
Foreign currency adjustment	26		353		379
Other adjustments	0		25		25
Balance, EOP, pre-flooring	5,566		10,056		15,622
Flooring impact, EOP	0		3		3
Balance, EOP, post-flooring	5,566		10,059		15,625
Less: Reinsurance recoverables	376		45		421
Balance after reinsurance recoverables, EOP, post-flooring	$	5,190	$	10,014	15,204
Other businesses					165
Total balance after reinsurance recoverables, EOP					$	15,369


	Six Months Ended June 30, 2024
	Deferred Profit Liability
	Retirement Strategies		International Businesses(1)
	Institutional				Total
	(in millions)
Balance, BOP, post-flooring	$	5,615	$	9,259	$	14,874
Less: Flooring impact, BOP	0		2		2
Balance, BOP, pre-flooring	5,615		9,257		14,872
Effect of assumption update	370		(288)		82
Effect of actual variances from expected experience and other activity	(30)		(46)		(76)
Adjusted balance, BOP	5,955		8,923		14,878
Profits deferred	89		1,346		1,435
Interest accrual	118		157		275
Amortization	(292)		(1,062)		(1,354)
Foreign currency adjustment	(2)		(492)		(494)
Other adjustments	0		17		17
Balance, EOP, pre-flooring	5,868		8,889		14,757
Flooring impact, EOP	0		2		2
Balance, EOP, post-flooring	5,868		8,891		14,759
Less: Reinsurance recoverables	401		39		440
Balance after reinsurance recoverables, EOP, post-flooring	$	5,467	$	8,852	14,319
Other businesses					154
Total balance after reinsurance recoverables, EOP					$	14,473

_________

(1)Prior period amounts have been updated to conform to current period presentation.

Additional Insurance Reserves

AIR represents the additional liability for annuitization, death, or other insurance benefits, including guaranteed minimum death benefits (“GMDB”) and guaranteed minimum income benefits (“GMIB”) contract features, that are above and beyond the contractholder's account balance for certain long-duration life contracts.

The following table shows a rollforward of AIR balances for variable and universal life products within Individual Life, which is the only line of business that contains a material AIR balance, for the period indicated, along with a reconciliation to the Company’s total AIR balance:


	Six Months Ended June 30,
	2025		2024
	(in millions)
Balance, including amounts in AOCI, BOP, post-flooring	$	16,376	$	14,308
Flooring impact and amounts in AOCI	632		843
Balance, excluding amounts in AOCI, BOP, pre-flooring	17,008		15,151
Effect of assumption update	(39)		153
Effect of actual variances from expected experience and other activity	74		150
Adjusted balance, BOP	17,043		15,454
Assessments collected(1)	517		591
Interest accrual	291		262
Benefits paid	(210)		(168)
Other adjustments	37		13
Balance, excluding amounts in AOCI, EOP, pre-flooring	17,678		16,152
Flooring impact and amounts in AOCI	(514)		(1,659)
Balance, including amounts in AOCI, EOP, post-flooring	17,164		14,493
Less: Reinsurance recoverables	10,097		7,026
Balance after reinsurance recoverables, including amounts in AOCI, EOP	7,067		7,467
Other businesses	118		63
Total balance after reinsurance recoverables	$	7,185	$	7,530

__________

(1)Represents the portion of gross assessments required to fund the future policy benefits.


	Six Months Ended June 30,
	2025		2024
Weighted-average duration of the liability in years (at original discount rate)	21		22
Weighted-average interest rate (at original discount rate)	3.41	%	3.40	%

Future Policy Benefits Reconciliation

The following table presents the reconciliation of the ending balances from above rollforwards, Benefit Reserves, DPL, and AIR including other liabilities, gross of related reinsurance recoverable, to the total liability for Future Policy Benefits on the Company's Consolidated Statement of Financial Position as of the periods indicated:


	Six Months Ended June 30,
	2025		2024
	(in millions)
Benefit reserves, EOP, post-flooring	$	187,106	$	182,150
Deferred Profit Liability EOP, post-flooring	15,790		14,913
Additional insurance reserves, including amounts in AOCI, EOP, post-flooring	17,282		14,556
Subtotal of amounts disclosed above	220,178		211,619
Other Future Policy Benefits reserves(1)	49,955		50,711
Total Future Policy Benefits	$	270,133	$	262,330

__________

(1)Primarily represents balances for which disaggregated rollforward disclosures are not required, including Closed Block liabilities, unpaid claims and claims expenses, and incurred but not reported and in course of settlement claim liabilities.

Revenue and Interest Expense

The following tables present revenue and interest expense related to Benefit Reserves, DPL, and AIR in the Company's Consolidated Statement of Operations as of the periods indicated:


	Six Months Ended June 30, 2025
	Revenues(1)
	Retirement Strategies		Individual Life				International Businesses		Other Businesses		Total
	Institutional		Term Life		Variable/Universal Life
	(in millions)
Benefit reserves	$	3,725	$	964	$	0	$	5,441	$	276	$	10,406
Deferred profit liability	132		0		0		(352)		(3)		(223)
Additional insurance reserves	0		0		1,321		0		35		1,356
Total	$	3,857	$	964	$	1,321	$	5,089	$	308	$	11,539


	Six Months Ended June 30, 2024
	Revenues(1)
	Retirement Strategies		Individual Life				International Businesses(2)		Other Businesses		Total
	Institutional		Term Life		Variable/Universal Life
	(in millions)
Benefit reserves	$	13,223	$	922	$	0	$	5,727	$	273	$	20,145
Deferred profit liability	(254)		0		0		(124)		(7)		(385)
Additional insurance reserves	0		0		1,622		0		0		1,622
Total	$	12,969	$	922	$	1,622	$	5,603	$	266	$	21,382


	Six Months Ended June 30, 2025
	Interest Expense
	Retirement Strategies		Individual Life				International Businesses		Other Businesses		Total
	Institutional		Term Life		Variable/Universal Life
	(in millions)
Benefit reserves	$	1,796	$	205	$	0	$	1,635	$	259	$	3,895
Deferred profit liability	116		0		0		172		2		290
Additional insurance reserves	0		0		291		1		0		292
Total	$	1,912	$	205	$	291	$	1,808	$	261	$	4,477


	Six Months Ended June 30, 2024
	Interest Expense
	Retirement Strategies		Individual Life				International Businesses(2)		Other Businesses		Total
	Institutional		Term Life		Variable/Universal Life
	(in millions)
Benefit reserves	$	1,619	$	206	$	0	$	1,589	$	253	$	3,667
Deferred profit liability	118		0		0		157		2		277
Additional insurance reserves	0		0		262		1		0		263
Total	$	1,737	$	206	$	262	$	1,747	$	255	$	4,207

__________

(1)Represents gross premiums for benefit reserves, gross premiums, excluding impact of foreign currency adjustments for DPL and gross assessments for AIR.

(2)Prior period amounts have been updated to conform to current period presentation.

POLICYHOLDERS’ ACCOUNT BALANCES

The balances of and changes in policyholders' account balances as of and for the periods ended are as follows:


	Six Months Ended June 30, 2025
	Retirement Strategies									Group Insurance			Individual Life			International Businesses			Total
	Institutional			Individual Variable			Individual Fixed			Life/Disability			Variable/Universal Life
	($ in millions)
Balance, beginning of period	$	19,088		$	34,085		$	12,020		$	4,974		$	27,596		$	54,270		$	152,033
Deposits	4,806			3,869			2,538			483			1,373			4,971			18,040
Interest credited	404			349			183			67			199			686			1,888
Acquisitions and dispositions	0			0			0			0			0			0			0
Policy charges	(5)			(34)			(24)			(168)			(1,024)			(296)			(1,551)
Surrenders and withdrawals	(2,855)			(556)			(455)			(842)			(933)			(672)			(6,313)
Benefit payments	(323)			(38)			(69)			0			(109)			(1,159)			(1,698)
Net transfers (to) from separate account	0			41			0			(13)			307			0			335
Change in market value and other adjustments(1)	0			917			60			0			495			(10)			1,462
Foreign currency adjustment	0			0			0			0			0			1,585			1,585
Balance, end of period	$	21,115		$	38,633		$	14,253		$	4,501		$	27,904		$	59,375		$	165,781


Closed Block Division																			4,293
Unearned revenue reserve, unearned expense credit, and additional interest reserve																			6,429
Other(2)																			4,428
Total Policyholders' account balance																			$	180,931
Weighted-average crediting rate	4.02		%	1.92		%	2.78		%	2.81		%	1.44		%	2.42		%	2.38		%
Net amount at risk(3)	$	0		$	0		$	0		$	74,475		$	408,334		$	30,967		$	513,776
Cash surrender value(4)	$	21,115		$	37,231		$	12,529		$	3,668		$	24,053		$	52,544		$	151,140


	Six Months Ended June 30, 2024
	Retirement Strategies									Group Insurance			Individual Life			International Businesses(5)			Total
	Institutional			Individual Variable			Individual Fixed			Life/Disability			Variable/Universal Life
	($ in millions)
Balance, beginning of period	$	17,738		$	23,765		$	7,095		$	5,293		$	27,439		$	51,399		$	132,729
Deposits	3,466			3,755			2,815			491			1,224			4,255			16,006
Interest credited	356			224			105			75			379			1,068			2,207
Acquisitions and Dispositions	0			0			0			0			0			(336)			(336)
Policy charges	(6)			(12)			0			(164)			(1,023)			(305)			(1,510)
Surrenders and withdrawals	(2,514)			(442)			(338)			(849)			(821)			(1,036)			(6,000)
Benefit payments	(292)			(38)			(37)			0			(69)			(1,257)			(1,693)
Net transfers (to) from separate account	0			49			0			(6)			285			0			328
Change in market value and other adjustments(1)	1			1,171			125			0			75			(25)			1,347
Foreign currency adjustment	0			0			0			0			0			(2,301)			(2,301)
Balance, end of period	$	18,749		$	28,472		$	9,765		$	4,840		$	27,489		$	51,462		$	140,777


Closed Block Division																			4,424
Unearned revenue reserve, unearned expense credit, and additional interest reserve																			5,622
Other(2)																			4,168
Total Policyholders' account balance																			$	154,991
Weighted-average crediting rate	3.90		%	1.71		%	2.49		%	2.96		%	2.76		%	4.15		%	3.23		%
Net amount at risk(3)	$	0		$	0		$	0		$	74,276		$	389,142		$	24,055		$	487,473
Cash surrender value(4)	$	18,749		$	26,972		$	8,193		$	3,794		$	23,664		$	45,343		$	126,715

__________

(1)Primarily relates to changes in the value of embedded derivative instruments associated with the indexed options of certain products.

(2)Includes $5,004 million and $5,268 million of Full Service account balances reinsured to Great-West as of June 30, 2025 and 2024, respectively.

(3)The net amount at risk calculation includes both general account and separate account balances.

(4)Cash surrender value represents the amount of the contractholder's account balances distributable at the balance sheet date less certain surrender charges. There are no cash surrender charges for the Institutional Retirement Strategies segment.

(5)Prior period amounts have been updated to conform to current period presentation.

“Policyholders’ account balances” for Institutional Retirement Strategies, International Businesses and Corporate and Other includes the Company’s Funding Agreement Notes Issuance Program (“FANIP”), which totaled $7,801 million and $5,436 million at June 30, 2025 and 2024, respectively. Under this program, which has a maximum authorized amount of $15 billion of medium-term notes and $6 billion of commercial paper, Delaware statutory trusts issue short-term commercial paper and/or medium-term notes to investors that are secured by funding agreements issued to the trusts by PICA. The outstanding commercial paper and notes have fixed or floating interest rates that range from 0.0% to 5.6% and original maturities ranging from zero months to ten years. Included in the amounts at June 30, 2025 and 2024 are funding agreements that secure the medium-term note liability, which are carried at amortized cost, of $4,742 million and $3,474 million, respectively, and short-term note liability of $2,834 million and $1,994 million, respectively, and Retail Note liability of $257 million and $0 million, respectively.

“Policyholders’ account balances” for Institutional Retirement Strategies also includes collateralized funding agreements issued to the Federal Home Loan Bank of New York (“FHLBNY”) totaling $2,628 million as of both June 30, 2025 and 2024. These obligations, which are carried at amortized cost, have fixed interest rates that range from 1.925% to 4.510% and original maturities of seven years.

The Company issues variable life and universal life insurance contracts which may also include a “no-lapse guarantee” where the Company contractually guarantees to the contractholder a death benefit even when the account value drops to zero, as long as the “no-lapse guarantee” premium is paid.

The net amount at risk is generally defined as the current death benefit in excess of the current account balance at the balance sheet date. The Company’s primary risk exposures for these contracts relates to actual deviations from, or changes to,

the assumptions used in the original pricing of these products, including contractholder mortality, contract lapses, and premium pattern, as well as interest rate and equity market returns.

The Company also issues annuity contracts that provide certain death benefit and/or living benefit guarantees and are accounted for as MRBs. See Note 11 for additional information, including the net amount at risk associated with these guarantees.

The balance of account values by range of guaranteed minimum crediting rates and the related range of difference, in basis points (“bps”), between rates being credited to policyholders and the respective guaranteed minimums are as follows:


	June 30, 2025
Range of Guaranteed Minimum Crediting Rate(1)	At guaranteed minimum		1 - 50 bps above guaranteed minimum		51 - 150 bps above guaranteed minimum		Greater than 150 bps above guaranteed minimum		Total
	(in millions)
Retirement Strategies - Institutional
Less than 1.00%	$	614	$	0	$	0	$	0	$	614
1.00% - 1.99%	1,552		0		0		0		1,552
2.00% - 2.99%	75		0		0		0		75
3.00% - 4.00%	3,513		0		0		0		3,513
Greater than 4.00%	4,732		0		0		0		4,732
Total	$	10,486	$	0	$	0	$	0	$	10,486
Retirement Strategies - Individual Variable
Less than 1.00%	$	448	$	204	$	407	$	0	$	1,059
1.00% - 1.99%	104		377		1		0		482
2.00% - 2.99%	20		4		4		0		28
3.00% - 4.00%	1,605		1		9		0		1,615
Greater than 4.00%	77		0		0		0		77
Total	$	2,254	$	586	$	421	$	0	$	3,261
Retirement Strategies - Individual Fixed
Less than 1.00%	$	0	$	4	$	18	$	1,118	$	1,140
1.00% - 1.99%	428		65		215		52		760
2.00% - 2.99%	536		454		550		15		1,555
3.00% - 4.00%	3,113		29		11		3		3,156
Greater than 4.00%	78		0		0		0		78
Total	$	4,155	$	552	$	794	$	1,188	$	6,689
Group Insurance - Life / Disability
Less than 1.00%	$	0	$	0	$	0	$	712	$	712
1.00% - 1.99%	0		0		0		2		2
2.00% - 2.99%	44		0		0		0		44
3.00% - 4.00%	1,442		6		51		7		1,506
Greater than 4.00%	3		0		0		0		3
Total	$	1,489	$	6	$	51	$	721	$	2,267
Individual Life - Variable / Universal Life
Less than 1.00%	$	0	$	0	$	0	$	354	$	354
1.00% - 1.99%	341		0		2,072		1,602		4,015
2.00% - 2.99%	284		1,565		2,737		432		5,018
3.00% - 4.00%	5,611		1,953		1,305		45		8,914
Greater than 4.00%	5,302		0		0		0		5,302
Total	$	11,538	$	3,518	$	6,114	$	2,433	$	23,603
International Businesses
Less than 1.00%	$	3,932	$	23	$	0	$	0	$	3,955
1.00% - 1.99%	16,450		32		0		0		16,482
2.00% - 2.99%	7,926		280		26		0		8,232
3.00% - 4.00%	8,743		0		0		0		8,743
Greater than 4.00%	16,833		0		0		0		16,833
Total	$	53,884	$	335	$	26	$	0	$	54,245


	June 30, 2024
Range of Guaranteed Minimum Crediting Rate(1)	At guaranteed minimum		1 - 50 bps above guaranteed minimum		51 - 150 bps above guaranteed minimum		Greater than 150 bps above guaranteed minimum		Total
	(in millions)
Retirement Strategies - Institutional
Less than 1.00%	$	503	$	0	$	0	$	0	$	503
1.00% - 1.99%	1,519		0		0		0		1,519
2.00% - 2.99%	608		0		0		0		608
3.00% - 4.00%	4,674		0		0		0		4,674
Greater than 4.00%	2,118		0		0		0		2,118
Total	$	9,422	$	0	$	0	$	0	$	9,422
Retirement Strategies - Individual Variable
Less than 1.00%	$	618	$	651	$	254	$	0	$	1,523
1.00% - 1.99%	187		118		2		0		307
2.00% - 2.99%	24		5		4		0		33
3.00% - 4.00%	1,811		7		9		0		1,827
Greater than 4.00%	90		0		0		0		90
Total	$	2,730	$	781	$	269	$	0	$	3,780
Retirement Strategies - Individual Fixed
Less than 1.00%	$	0	$	4	$	10	$	707	$	721
1.00% - 1.99%	482		96		234		79		891
2.00% - 2.99%	548		461		563		16		1,588
3.00% - 4.00%	1,036		76		8		2		1,122
Greater than 4.00%	90		0		0		0		90
Total	$	2,156	$	637	$	815	$	804	$	4,412
Group Insurance - Life / Disability
Less than 1.00%	$	0	$	0	$	0	$	921	$	921
1.00% - 1.99%	0		0		0		0		0
2.00% - 2.99%	27		0		0		0		27
3.00% - 4.00%	1,448		0		0		62		1,510
Greater than 4.00%	72		0		0		0		72
Total	$	1,547	$	0	$	0	$	983	$	2,530
Individual Life - Variable / Universal Life
Less than 1.00%	$	0	$	0	$	0	$	324	$	324
1.00% - 1.99%	247		0		1,678		1,848		3,773
2.00% - 2.99%	31		1,480		2,837		448		4,796
3.00% - 4.00%	4,300		3,897		1,342		28		9,567
Greater than 4.00%	5,433		0		0		0		5,433
Total	$	10,011	$	5,377	$	5,857	$	2,648	$	23,893
International Businesses(2)
Less than 1.00%	$	15,646	$	40	$	83	$	2,560	$	18,329
1.00% - 1.99%	10,445		82		0		0		10,527
2.00% - 2.99%	4,755		293		32		0		5,080
3.00% - 4.00%	5,852		0		0		0		5,852
Greater than 4.00%	7,103		0		0		0		7,103
Total	$	43,801	$	415	$	115	$	2,560	$	46,891

__________

(1)Excludes contracts without minimum guaranteed crediting rates, such as funds with indexed-linked crediting options and Japan variable products.

(2)Prior period amounts have been updated to conform to current period presentation.

Unearned Revenue Reserve (“URR”)

The balance of and changes in URR as of and for the periods ended are as follows:


	Six Months Ended June 30, 2025
	Individual Life		International Businesses
	Variable/ Universal Life				Total
	(in millions)
Balance, beginning of period	$	5,245	$	505	$	5,750
Unearned revenue	432		98		530
Amortization expense	(126)		(14)		(140)
Other adjustments	0		0		0
Foreign currency adjustment	0		30		30
Balance, end of period	$	5,551	$	619	6,170
Other					64
Total unearned revenue reserve balance					$	6,234


	Six Months Ended June 30, 2024
	Individual Life		International Businesses(1)
	Variable/ Universal Life				Total
	(in millions)
Balance, beginning of period	$	4,613	$	454	$	5,067
Unearned revenue	436		80		516
Amortization expense	(118)		(11)		(129)
Other adjustments	0		(57)		(57)
Foreign currency adjustment	0		(34)		(34)
Balance, end of period	$	4,931	$	432	5,363
Other					53
Total unearned revenue reserve balance					$	5,416

MARKET RISK BENEFITS

The following table shows a rollforward of MRB balances for annuity products within Individual Retirement Strategies, which is the only line of business that contains a material MRB balance, along with a reconciliation to the Company’s total net MRB positions as of the following dates:


	Six Months Ended June 30, 2025
	Retirement Strategies
	Individual Variable		Individual Fixed		Total
	(in millions)
Balance, BOP	$	2,740	$	0	$	2,740
Effect of cumulative changes in NPR	672		0		672
Balance, BOP, before effect of changes in NPR	3,412		0		3,412
Attributed fees collected	525		6		531
Claims paid	(41)		0		(41)
Interest accrual	94		0		94
Actual in force different from expected	40		2		42
Effect of changes in interest rates	389		(7)		382
Effect of changes in equity markets	(494)		(2)		(496)
Effect of assumption update and other refinements	112		151		263
Issuances	35		17		52



Other adjustments	12		3		15
Balance, EOP, before effect of changes in NPR	4,084		170		4,254
Effect of cumulative changes in NPR	(838)		(7)		(845)
Balance, EOP	3,246		163		3,409
Less: Reinsured MRBs	777		0		777
Balance, EOP, net of reinsurance	$	2,469	$	163	2,632
Other businesses					39
Total net MRB balance					$	2,671


	Six Months Ended June 30, 2024
	Retirement Strategies
	Individual Variable		Individual Fixed		Total
	(in millions)
Balance, BOP	$	4,038	$	0	$	4,038
Effect of cumulative changes in NPR	1,137		0		1,137
Balance, BOP, before effect of changes in NPR	5,175		0		5,175
Attributed fees collected	569		0		569
Claims paid	(42)		0		(42)
Interest accrual	130		0		130
Actual in force different from expected	(6)		0		(6)
Effect of changes in interest rates	(909)		0		(909)
Effect of changes in equity markets	(1,165)		0		(1,165)
Effect of assumption update and other refinements(1)	88		0		88
Issuances	29		0		29



Other adjustments(1)	20		0		20
Balance, EOP, before effect of changes in NPR	3,889		0		3,889
Effect of cumulative changes in NPR	(942)		0		(942)
Balance, EOP	2,947		0		2,947
Less: Reinsured MRBs	635		0		635
Balance, EOP, net of reinsurance	$	2,312	$	0	2,312
Other businesses					47
Total net MRB balance					$	2,359

_________

(1)Prior period amounts have been updated to conform to current presentation.

In both 2025 and 2024, the Company recognized an unfavorable impact to net income attributable to the actuarial assumption update for direct and assumed MRBs, primarily due to updates to policyholder behavior assumptions.

The Company issues certain variable annuity insurance contracts where the Company contractually guarantees to the contractholder a return of no less than (1) total deposits made to the contract adjusted for any partial withdrawals plus a minimum return, and/or (2) the highest anniversary contract value on a specified date adjusted for any withdrawals. These guarantees include benefits that are payable in the event of death, annuitization or at specified dates during the accumulation period and withdrawal and income benefits payable during specified periods.

The Company also issues indexed annuity contracts for which the return is tied to the return of specific indices where the Company contractually guarantees to the contractholder a return of no less than total deposits made to the contract adjusted for any partial withdrawals upon death. In certain of these indexed annuity contracts, the Company also contractually guarantees to the contractholder withdrawal benefits payable during specific periods.

For guarantees of benefits that are payable in the event of death, the net amount at risk is generally defined as the current guaranteed minimum death benefit in excess of the current account balance at the balance sheet date. The Company’s primary risk exposures for these contracts relates to actual deviations from, or changes to, the assumptions used in the original pricing of these products, including fixed income and equity market returns, contract lapses and contractholder mortality.

For guarantees of benefits that are payable at annuitization, the net amount at risk is generally defined as the present value of the minimum guaranteed annuity payments available to the contractholder determined in accordance with the terms of the contract in excess of the current account balance. The Company’s primary risk exposures for these contracts relates to actual deviations from, or changes to, the assumptions used in the original pricing of these products, including fixed income and equity market returns, timing of annuitization, contract lapses and contractholder mortality.

For guarantees of benefits that are payable at withdrawal, the net amount at risk is generally defined as the present value of the minimum guaranteed withdrawal payments available to the contractholder determined in accordance with the terms of the contract in excess of the current account balance.

For guarantees of accumulation balances, the net amount at risk is generally defined as the guaranteed minimum accumulation balance minus the current account balance. The Company’s primary risk exposures for these contracts relates to actual deviations from, or changes to, the assumptions used in the original pricing of these products, including equity market returns, interest rates, market volatility and contractholder behavior.

The following tables present accompanying information to the rollforward tables above.


	June 30, 2025
	Retirement Strategies
	Individual Variable		Individual Fixed
	($ in millions)
Net amount at risk(1)	$	8,736	$	401
Weighted-average attained age of contractholders	72		67


	June 30, 2024
	Retirement Strategies
	Individual Variable		Individual Fixed
	($ in millions)
Net amount at risk(1)	$	9,358	N/A
Weighted-average attained age of contractholders	71		N/A

__________

(1)For contracts with multiple benefit features, the highest net amount at risk for each contract is included.

The tables below reconcile MRB asset and liability positions as of the following dates:


	June 30, 2025
	Retirement Strategies
	Individual Variable		Individual Fixed		Other Businesses		Total
	(in millions)
Direct and assumed	$	1,291	$	1	$	1	$	1,293
Ceded	894		0		1		895
Total MRB assets	$	2,185	$	1	$	2	$	2,188

Direct and assumed	$	4,537	$	164	$	41	$	4,742
Ceded	117		0		0		117
Total MRB liabilities	$	4,654	$	164	$	41	$	4,859

Net liability	$	2,469	$	163	$	39	$	2,671


	June 30, 2024
	Retirement Strategies
	Individual Variable		Individual Fixed		Other Businesses		Total
	(in millions)
Direct and assumed	$	1,441	$	0	$	11	$	1,452
Ceded	780		0		1		781
Total MRB assets	$	2,221	$	0	$	12	$	2,233

Direct and assumed	$	4,388	$	0	$	59	$	4,447
Ceded	145		0		0		145
Total MRB liabilities	$	4,533	$	0	$	59	$	4,592

Net liability	$	2,312	$	0	$	47	$	2,359