| 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) | (1) | | | (29) | | | Adjusted balance, January 1 | 3,417 | | | 3,556 | | | Interest accrual | 88 | | | 92 | | | Net premiums: earned during period | (203) | | | (212) | | | Balance, end of period at original locked in discount rate | 3,302 | | | 3,436 | | | Effect of changes in discount rate | 50 | | | 11 | | Balance, June 30 | $ | 3,352 | | | $ | 3,447 | | | | | | | 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) | 22 | | | 11 | | | Adjusted balance, January 1 | 17,045 | | | 17,102 | | | Interest accrual | 458 | | | 461 | | | Benefit & expense payments | (574) | | | (592) | | | Balance, end of period at original locked in discount rate | 16,929 | | | 16,971 | | | Effect of changes in discount rate | (248) | | | (313) | | Balance, June 30 | $ | 16,681 | | | $ | 16,658 | | | | | | | | | | Net LFPB, June 30 | $ | 13,329 | | | $ | 13,211 | |
| | | | | | | (a) | As of June 30, 2025 and 2024, the re-measurement loss of $23 million and $40 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 | Six Months Ended | | June 30, | June 30, | | 2025 | | 2024 | 2025 | | 2024 | | | | | | | | | (In millions) | | | | | | | | | | | | | | | | Earned premiums | $ | 106 | | | $ | 109 | | $ | 212 | | | $ | 219 | | | Interest accretion | 185 | | | 185 | | 370 | | | 369 | |
The following table presents undiscounted expected future benefit and expense payments and undiscounted expected future gross premiums.
| | | | | | | | | | | | | June 30, | | 2025 | | 2024 | | | | | | (In millions) | | | | | | | | | Expected future benefit and expense payments | $ | 31,141 | | | $ | 32,212 | | | Expected future gross premiums | 4,971 | | | 5,149 | |
The weighted average interest rates in the table below are calculated based on the rate used to discount all future cash flows.
| | | | | | | | | | | | | | | | | | | June 30, | | December 31, | | 2025 | | 2024 | | 2024 | | | | | | | | | | | | | | Original locked in discount rate | 5.18 | % | | 5.21 | % | | 5.20 | % | | Upper-medium grade fixed income instrument discount rate | 5.39 | | | 5.43 | | | 5.51 | |
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