| Summary of life, annuity and health insurance benefits liabilities |
A summary of our long-duration life, annuity and health insurance benefits liabilities disaggregated by our principal product categories follows (in millions).
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June 30, |
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2025 |
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|
2024 |
|
Periodic payment annuity (“Annuities”) |
$ |
10,457 |
|
|
$ |
10,378 |
|
Life and health |
|
4,504 |
|
|
|
4,167 |
|
Other |
|
2,904 |
|
|
|
2,955 |
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|
$ |
17,865 |
|
|
$ |
17,500 |
|
|
| Summary of changes in discounted present values of expected future policy benefits and expected future net premiums |
Net premiums represent the portion of expected gross premiums that are required to provide for future policy benefits and variable expenses.
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Annuities |
|
|
Life and health |
|
|
2025 |
|
|
2024 |
|
|
2025 |
|
|
2024 |
|
Expected future policy benefits: |
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|
|
|
|
|
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|
|
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Balance at the beginning of the year |
$ |
10,276 |
|
|
$ |
11,212 |
|
|
$ |
43,784 |
|
|
$ |
52,665 |
|
Balance at the beginning of the year - original discount rates |
|
11,757 |
|
|
|
11,681 |
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|
|
55,170 |
|
|
|
65,871 |
|
Effect of cash flow assumption changes |
|
— |
|
|
|
— |
|
|
|
(98 |
) |
|
|
(324 |
) |
Effect of actual versus expected experience |
|
(20 |
) |
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|
4 |
|
|
|
246 |
|
|
|
(12,836 |
) |
Change in benefits, net |
|
(240 |
) |
|
|
(235 |
) |
|
|
(887 |
) |
|
|
(943 |
) |
Interest accrual |
|
277 |
|
|
|
273 |
|
|
|
646 |
|
|
|
575 |
|
Foreign currency effect |
|
136 |
|
|
|
15 |
|
|
|
1,489 |
|
|
|
(459 |
) |
Balance at June 30 - original discount rates |
|
11,910 |
|
|
|
11,738 |
|
|
|
56,566 |
|
|
|
51,884 |
|
Effect of changes in discount rate assumptions |
|
(1,453 |
) |
|
|
(1,360 |
) |
|
|
(12,232 |
) |
|
|
(12,739 |
) |
Balance at June 30 |
$ |
10,457 |
|
|
$ |
10,378 |
|
|
$ |
44,334 |
|
|
$ |
39,145 |
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Expected future net premiums: |
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|
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|
|
|
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|
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Balance at the beginning of the year |
|
|
|
|
|
|
$ |
39,294 |
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|
$ |
46,916 |
|
Balance at the beginning of the year - original discount rates |
|
|
|
|
|
|
|
49,500 |
|
|
|
58,731 |
|
Effect of cash flow assumption changes |
|
|
|
|
|
|
|
(66 |
) |
|
|
(326 |
) |
Effect of actual versus expected experience |
|
|
|
|
|
|
|
204 |
|
|
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(11,225 |
) |
Change in premiums, net |
|
|
|
|
|
|
|
(884 |
) |
|
|
(876 |
) |
Interest accrual |
|
|
|
|
|
|
|
579 |
|
|
|
507 |
|
Foreign currency effect |
|
|
|
|
|
|
|
1,395 |
|
|
|
(436 |
) |
Balance at June 30 - original discount rates |
|
|
|
|
|
|
|
50,728 |
|
|
|
46,375 |
|
Effect of changes in discount rate assumptions |
|
|
|
|
|
|
|
(10,898 |
) |
|
|
(11,397 |
) |
Balance at June 30 |
|
|
|
|
|
|
$ |
39,830 |
|
|
$ |
34,978 |
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Liabilities for future policy benefits: |
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Balance at June 30 |
$ |
10,457 |
|
|
$ |
10,378 |
|
|
$ |
4,504 |
|
|
$ |
4,167 |
|
Reinsurance recoverables |
|
— |
|
|
|
— |
|
|
|
(51 |
) |
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|
(49 |
) |
Balance at June 30, net of reinsurance recoverables |
$ |
10,457 |
|
|
$ |
10,378 |
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|
$ |
4,453 |
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|
$ |
4,118 |
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| Summary of Other Information Relating to Long-Duration Insurance Liabilities |
Other information relating to our long-duration insurance liabilities follows (dollars in millions).
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Annuities |
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Life and health |
|
|
June 30, |
|
|
June 30, |
|
|
2025 |
|
|
2024 |
|
|
2025 |
|
|
2024 |
|
Undiscounted expected future gross premiums |
$ |
— |
|
|
$ |
— |
|
|
$ |
103,580 |
|
|
$ |
94,942 |
|
Discounted expected future gross premiums |
|
— |
|
|
|
— |
|
|
|
60,951 |
|
|
|
55,787 |
|
Undiscounted expected future benefits |
|
30,670 |
|
|
|
30,867 |
|
|
|
94,173 |
|
|
|
86,253 |
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|
Weighted average discount rate |
|
5.7 |
% |
|
|
5.7 |
% |
|
|
5.2 |
% |
|
|
5.2 |
% |
Weighted average accretion rate |
|
4.8 |
% |
|
|
4.8 |
% |
|
|
2.7 |
% |
|
|
2.7 |
% |
Weighted average duration |
16 years |
|
|
16 years |
|
|
13 years |
|
|
13 years |
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