v3.25.2
Future Policy Benefit Reserves (Tables)
6 Months Ended
Jun. 30, 2025
Insurance [Abstract]  
Liability for Future Policy Benefit, Activity
The following table summarizes balances and changes in the LFPB.
(In millions)
20252024
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 rate3,418 3,585 
     Effect of changes in cash flow assumptions (1)
— — 
     Effect of actual variances from expected experience (1)
(1)(29)
Adjusted balance, January 13,417 3,556 
Interest accrual88 92 
     Net premiums: earned during period(203)(212)
Balance, end of period at original locked in discount rate3,302 3,436 
     Effect of changes in discount rate50 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 rate440 (578)
Balance, January 1, at original locked in discount rate17,023 17,091 
     Effect of changes in cash flow assumptions (1)
— — 
     Effect of actual variances from expected experience (1)
22 11 
Adjusted balance, January 117,045 17,102 
Interest accrual458 461 
     Benefit & expense payments(574)(592)
Balance, end of period at original locked in discount rate16,929 16,971 
     Effect of changes in discount rate(248)(313)
Balance, June 30
$16,681 $16,658 
Net LFPB$13,329 $13,211 
(1) As of June 30, 2025 and 2024 the re-measurement gain (loss) of $(23) million and $(40) 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 June 30Three MonthsSix Months
(In millions)
2025202420252024
Earned premiums$106 $109 $212 $219 
Interest accretion185 185 370 369 
The following table presents undiscounted expected future benefit and expense payments, and undiscounted expected future gross premiums.
As of June 30
(In millions)
20252024
Expected future benefit and expense payments$31,141 $32,212 
Expected future gross premiums4,971 5,149 
The weighted average interest rates in the table below are calculated based on the rate used to discount all future cash flows.
As of June 30
As of December 31
202520242024
Original locked in discount rate5.18 %5.21 %5.20 %
Upper-medium grade fixed income instrument discount rate5.39 5.43 5.51