v3.25.4
Future Policy Benefits
 12 Months Ended
Dec. 31, 2025
Insurance [Abstract]  
Future Policy Benefits
12. Future Policy Benefits
Future policy benefits primarily include reserves for traditional life and annuity payout contracts, which represent an estimate of the present value of future benefits less the present value of future net premiums. Included in Future policy benefits are liabilities for annuities issued in structured settlement arrangements whereby a claimant receives life contingent payments over their lifetime. Also included are pension risk transfer arrangements whereby an upfront premium is received in exchange for guaranteed retirement benefits. All payments under these arrangements are fixed and determinable with respect to their amounts and dates. Structured settlement or other annuitization elections (e.g., certain single premium immediate annuities) that do not involve life contingent payments, but rather payments for a stated period are included in Policyholder contract deposits.
For traditional and limited pay long-duration products, benefit reserves are accrued and benefit expense is recognized using a net premium ratio (“NPR”) methodology for each annual cohort of business. This NPR method incorporates periodic retrospective revisions to the NPR to reflect updated actuarial assumptions and variances in actual versus expected experience. The Future policy benefit liability is accrued by multiplying the gross premium recognized in each period by the NPR. The net premium is equal to the portion of the gross premium required to provide for all benefits and certain expenses and may not exceed 100%. Benefits in excess of premiums are expensed immediately through policyholder benefits. In addition, periodic revisions to the NPR below 100% may result in reclassification between the benefit reserves and deferred profit liability for limited pay contracts.
Insurance contracts are aggregated into annual cohorts for the purposes of determining the liability for future policy benefits (“LFPB”), but are not aggregated across segments. These annual cohorts may be further segregated based on product characteristics, or to distinguish business reinsured from non-reinsured business or products issued in different functional currencies. The assumptions used to calculate the future policy benefits include discount rates, persistency and recognized morbidity and mortality tables modified to reflect the Company's experience.
The current discount rate assumption for the liability for future policy benefits is derived from market observable yields on upper-medium-grade fixed income instruments. The Company uses an external index as the source of the yields on these instruments for the first 30 years. For years 30 to 50, the yield is derived using market observable yields. Yields for years 50 to 100 are extrapolated using a flat forward approach, maintaining a constant forward spread through the period. The current discount rate assumption is updated quarterly and used to remeasure the liability at the reporting date, with the resulting change in the discount rate reflected in OCI.
The method for constructing and applying the locked-in discount rate assumptions on newly issued business is determined based on factors such as product characteristics and the expected timing of cash flows. This discount rate assumption is derived from market observable yields on upper-medium-grade fixed income instruments. Similar to the current discount rate assumption, the Company may employ conversion and interpolation methodologies when necessary. The applicable interest accretion is reflected in policyholder benefits in the Consolidated Statements of Income (Loss).
The following tables present the balances and changes in the liability for future policy benefits and a reconciliation of the net liability for future policy benefits to the liability for future policy benefits in the Consolidated Balance Sheets:
Individual
Retirement		Group
Retirement		Life
Insurance		Institutional
Markets		Corporate and OtherTotal
(in millions, except for liability durations)
Year Ended December 31, 2025
Present value of expected net premiums
Balance, beginning of year$— $— $8,287 $— $871 $9,158 
Effect of changes in discount rate assumptions (AOCI)— — 797 — 61 858 
Beginning balance at original discount rate— — 9,084 — 932 10,016 
Effect of changes in cash flow assumptions— — (169)— (8)(177)
Effect of actual variances from expected experience— — (34)— 1 (33)
Adjusted beginning of year balance— — 8,881 — 925 9,806 
Issuances— — 684 — 35 719 
Interest accrual— — 348 — 38 386 
Net premium collected— — (1,051)— (139)(1,190)
Other— — 7 — — 7 
Ending balance at original discount rate— — 8,869 — 859 9,728 
Effect of changes in discount rate assumptions (AOCI)— — (504)— (34)(538)
Balance, end of year$— $— $8,365 $— $825 $9,190 
Present value of expected future policy benefits
Balance, beginning of year$1,130 $202 $16,947 $19,487 $19,243 $57,009 
Effect of changes in discount rate assumptions (AOCI)145 3 1,720 3,206 1,556 6,630 
Reclassification due to reinsurance recapture— 102 — 259 (361)— 
Beginning balance at original discount rate1,275 307 18,667 22,952 20,438 63,639 
Effect of changes in cash flow assumptions(a)
— — (129)9 (4)(124)
Effect of actual variances from expected experience(a)
(23)(2)(42)14 (6)(59)
Adjusted beginning of year balance1,252 305 18,496 22,975 20,428 63,456 
Issuances93 10 673 4,198 43 5,017 
Interest accrual50 15 796 1,029 967 2,857 
Benefit payments(118)(42)(1,502)(1,467)(1,475)(4,604)
Foreign exchange impact— — — 702 — 702 
Other6 (2)7 — (11)— 
Ending balance at original discount rate1,283 286 18,470 27,437 19,952 67,428 
Effect of changes in discount rate assumptions (AOCI)(110)5 (1,261)(3,290)(1,180)(5,836)
Balance, end of year$1,173 $291 $17,209 $24,147 $18,772 $61,592 
Net liability for future policy benefits, end of period1,173 291 8,844 24,147 17,947 52,402 
Liability for future policy benefits for certain participating contracts— — 11 — 1,223 1,234 
Liability for universal life policies(b)
— — 4,241 — 54 4,295 
Deferred profit liability32 20 26 1,684 769 2,531 
Other reconciling items(c)
14 — 391 — 104 509 
Future policy benefits for life and accident and health insurance contracts1,219 311 13,513 25,831 20,097 60,971 
Less: Reinsurance recoverable:(5)— (668)(47)(20,097)(20,817)
Net liability for future policy benefits after reinsurance recoverable$1,214 $311 $12,845 $25,784 $— $40,154 
Weighted average liability duration of the liability for future policy benefits (years)(d)
7.35.910.310.910.2
Individual
Retirement		Group
Retirement		Life
Insurance		Institutional
Markets		Corporate and OtherTotal
(in millions, except for liability durations)
Year Ended December 31, 2024
Present value of expected net premiums
Balance, beginning of year$— $— $8,379 $— $973 $9,352 
Effect of changes in discount rate assumptions (AOCI)— — 1,482 — 44 1,526 
Reclassified to Liabilities held-for-sale— — 4,287 — — 4,287 
Beginning balance at original discount rate— — 14,148 — 1,017 15,165 
Effect of changes in cash flow assumptions— — (57)— (11)(68)
Effect of actual variances from expected experience— — 16 — (3)13 
Adjusted beginning of year balance— — 14,107 — 1,003 15,110 
Issuances— — 910 — — 910 
Interest accrual— — 375 — 42 417 
Net premium collected— — (1,153)— (113)(1,266)
Foreign exchange impact— — (46)— — (46)
Other— — (1)— — (1)
Dispositions— — (5,108)— — (5,108)
Ending balance at original discount rate— — 9,084 — 932 10,016 
Effect of changes in discount rate assumptions (AOCI)— — (797)— (61)(858)
Balance, end of year$— $— $8,287 $— $871 $9,158 
Present value of expected future policy benefits
Balance, beginning of year$1,149 $217 $17,531 $18,482 $20,858 $58,237 
Effect of changes in discount rate assumptions (AOCI)116 (3)2,745 1,906 453 5,217 
Reclassified to Liabilities held-for-sale— — 5,119 — — 5,119 
Beginning balance at original discount rate1,265 214 25,395 20,388 21,311 68,573 
Effect of changes in cash flow assumptions(a)
— — (24)(41)(39)(104)
Effect of actual variances from expected experience(a)
(23)(3)35 (3)(11)(5)
Adjusted beginning of year balance1,242 211 25,406 20,344 21,261 68,464 
Issuances96 13 895 2,842 33 3,879 
Interest accrual55 11 836 897 1,010 2,809 
Benefit payments(118)(25)(1,615)(1,229)(1,499)(4,486)
Foreign exchange impact— — (61)(161)— (222)
Other— (5)2 — (6)(9)
Dispositions— — (6,796)— — (6,796)
Ending balance at original discount rate1,275 205 18,667 22,693 20,799 63,639 
Effect of changes in discount rate assumptions (AOCI)(145)(3)(1,720)(3,206)(1,556)(6,630)
Balance, end of year$1,130 $202 $16,947 $19,487 $19,243 $57,009 
Net liability for future policy benefits, end of year1,130 202 8,660 19,487 18,372 47,851 
Liability for future policy benefits for certain participating contracts— — 12 — 1,263 1,275 
Liability for universal life policies(b)
— — 4,034 — 54 4,088 
Deferred profit liability37 11 23 1,587 836 2,494 
Other reconciling items(c)
16 — 441 — 107 564 
Future policy benefits for life and accident and health insurance contracts1,183 213 13,170 21,074 20,632 56,272 
Less: Reinsurance recoverable:(4)— (664)(41)(20,396)(21,105)
Net liability for future policy benefits after reinsurance recoverable$1,179 $213 $12,506 $21,033 $236 $35,167 
Weighted average liability duration of the liability for future policy benefits (years)(d)
7.56.410.711.210.6
Individual
Retirement		Group
Retirement		Life
Insurance		Institutional
Markets		Corporate and OtherTotal
(in millions, except for liability durations)
Year Ended December 31, 2023
Present value of expected net premiums
Balance, beginning of year$— $— $11,654 $— $991 $12,645 
Effect of changes in discount rate assumptions (AOCI)— — 1,872 — 66 1,938 
Beginning balance at original discount rate— — 13,526 — 1,057 14,583 
Effect of changes in cash flow assumptions— — 34 — 21 55 
Effect of actual variances from expected experience— — 62 — 20 82 
Adjusted beginning of year balance— — 13,622 — 1,098 14,720 
Issuances— — 1,277 — — 1,277 
Interest accrual— — 437 — 46 483 
Net premium collected— — (1,464)— (118)(1,582)
Foreign exchange impact— — 265 — — 265 
Other— — 11 — (9)2 
Ending balance at original discount rate— — 14,148 — 1,017 15,165 
Effect of changes in discount rate assumptions (AOCI)— — (1,482)— (44)(1,526)
Reclassified to Liabilities held-for-sale— — (4,287)— — (4,287)
Balance, end of year$— $— $8,379 $— $973 $9,352 
Present value of expected future policy benefits
Balance, beginning of year$1,031 $211 $21,179 $12,464 $20,621 $55,506 
Effect of changes in discount rate assumptions (AOCI)145 2 3,424 2,634 1,105 7,310 
Beginning balance at original discount rate1,176 213 24,603 15,098 21,726 62,816 
Effect of changes in cash flow assumptions(a)
— — 62 — 76 138 
Effect of actual variances from expected experience(a)
1 (2)122 15 (6)130 
Adjusted beginning of year balance1,177 211 24,787 15,113 21,796 63,084 
Issuances151 18 1,266 5,339 26 6,800 
Interest accrual46 11 908 664 1,035 2,664 
Benefit payments(109)(26)(1,921)(1,087)(1,522)(4,665)
Foreign exchange impact— — 345 359 — 704 
Other— — 10 — (24)(14)
Ending balance at original discount rate1,265 214 25,395 20,388 21,311 68,573 
Effect of changes in discount rate assumptions (AOCI)(116)3 (2,745)(1,906)(453)(5,217)
Reclassified to Liabilities held-for-sale— — (5,119)— — (5,119)
Balance, end of year$1,149 $217 $17,531 $18,482 $20,858 $58,237 
Net liability for future policy benefits, end of year1,149 217 9,152 18,482 19,885 48,885 
Liability for future policy benefits for certain participating contracts— — 13 — 1,300 1,313 
Liability for universal life policies(b)
— — 3,731 — 55 3,786 
Deferred profit liability64 10 19 1,543 875 2,511 
Other reconciling items(c)
18 — 485 — 110 613 
Future policy benefits for life and accident and health insurance contracts1,231 227 13,400 20,025 22,225 57,108 
Less: Reinsurance recoverable:(4)— (719)(39)(21,986)(22,748)
Net liability for future policy benefits after reinsurance recoverable$1,227 $227 $12,681 $19,986 $239 $34,360 
Weighted average liability duration of the liability for future policy benefits (years) (d)(e)
7.96.812.812.111.5
Effect of changes in cash flow assumptions and variances from actual experience are partially offset by changes in the deferred profit liability.
(b)Additional details can be found in the table that presents the balances and changes in the liability for universal life policies.
(c)Other reconciling items primarily include the Accident and Health as well as Group Benefits (short-duration) contracts.
(d)The weighted average liability durations are calculated as the modified duration using projected future net liability cashflows that are aggregated at the segment level, utilizing the segment level weighted average interest rates and current discount rate, which can be found in the table below.
(e)Includes balances that were reclassified to Liabilities held-for-sale in the Consolidated Balance Sheets.
For the years ended December 31, 2025, 2024 and 2023 in the traditional and term life insurance block, capping of net premium ratios at 100% caused a (credit)/charge to net income of $0 million, $(1) million and $(1) million, respectively. The discount rate was updated based on market observable information. Relative to the prior period, the increase in upper-medium-grade fixed income yields resulted in a decrease in the liability for future policy benefits.
The following table presents the amount of undiscounted expected future benefit payments and undiscounted and discounted expected gross premiums for future policy benefits for nonparticipating contracts:
Years Ended December 31,
(in millions)202520242023
Individual RetirementUndiscounted expected future benefits and expense$1,865 $1,836 $1,827 
Undiscounted expected future gross premiums$— $— $— 
Group RetirementUndiscounted expected future benefits and expense$411 $303 $313 
Undiscounted expected future gross premiums$— $— $— 
Life Insurance*
Undiscounted expected future benefits and expense$29,350 $31,027 $40,489 
Undiscounted expected future gross premiums$19,225 $21,729 $30,458 
Discounted expected future gross premiums (at current discount rate)$13,135 $14,296 $20,188 
Institutional MarketsUndiscounted expected future benefits and expense$54,691 $43,212 $38,253 
Undiscounted expected future gross premiums$— $— $— 
Corporate and other
Undiscounted expected future benefits and expense$39,729 $41,969 $43,375 
Undiscounted expected future gross premiums$1,804 $1,973 $2,146 
Discounted expected future gross premiums (at current discount rate)$1,238 $1,307 $1,444 
*2023 includes balances related to AIG Life U.K. that have been reclassified to Liabilities held-for-sale in the Consolidated Balance Sheets at September 30, 2023.
The following table presents the amount of revenue and interest recognized in the Consolidated Statements of Income (Loss) for future policy benefits for nonparticipating contracts:
Gross PremiumsInterest Accretion
Years Ended December 31,Years Ended December 31,
(in millions)202520242023202520242023
Individual Retirement$93 $105 $171 $50 $55 $46 
Group Retirement9 12 19 15 11 11 
Life Insurance1,854 1,999 2,393 448 461 471 
Institutional Markets
4,302 2,930 5,638 1,029 897 664 
Corporate and Other234 234 246 929 968 989 
Total$6,492 $5,280 $8,467 $2,471 $2,392 $2,181 
The following table presents the weighted-average interest rate for future policy benefits for nonparticipating contracts:
Individual
Retirement		Group
Retirement		Life
Insurance		Institutional
Markets		Corporate and Other
December 31, 2025
Weighted-average interest rate, original discount rate 3.93 %5.22 %4.70 %4.60 %4.80 %
Weighted-average interest rate, current discount rate 5.22 %5.02 %5.47 %5.66 %5.48 %
December 31, 2024
Weighted-average interest rate, original discount rate
3.80 %5.18 %4.70 %4.31 %4.87 %
Weighted-average interest rate, current discount rate
5.50 %5.43 %5.64 %5.62 %5.62 %
December 31, 2023
Weighted-average interest rate, original discount rate *3.73 %5.15 %4.10 %4.14 %4.86 %
Weighted-average interest rate, current discount rate *5.05 %5.02 %5.04 %4.96 %5.08 %
*    Weighted-average interest rates for Life Insurance include balances that have been reclassified to Liabilities held-for-sale.
The weighted average interest rates are calculated using projected future net liability cash flows that are aggregated to the segment level, and are represented as an annual rate.
Actuarial Assumption Updates for Liability for Future Policy Benefits
In 2025, Corebridge recognized an unfavorable impact to net income primarily driven by updates to policyholder assumptions, including lapse and mortality updates related to traditional products in Life Insurance. In 2024, Corebridge recognized a favorable impact to net income primarily due to model refinements offset by lapse and mortality assumption updates in Life Insurance. In 2023, Corebridge recognized an unfavorable impact to net income due to other refinements on Life products offset in part by mortality assumption updates.
Deferred Profit Liability: Corebridge issues certain annuity and life insurance contracts where premiums are paid up-front or for a shorter period than benefits will be paid (i.e., limited pay contracts). A Deferred Profit Liability (“DPL”) is required to be established to avoid recognition of gains when these contracts are issued. DPLs are amortized over the life of the contracts to align the revenue recognized with the related benefit expenses.
The difference between the gross premium received and recorded as revenue and the net premium is deferred and recognized in policyholder benefits in a constant relationship to insurance in-force, or for annuities, the amount of expected future policy benefits. This deferred profit liability accretes interest and is recorded in the Consolidated Balance Sheets in Future policy benefits. Cash flow assumptions included in the measurement of the DPL are the same as those utilized in the respective LFPBs and are reviewed at least annually. The cash flow estimates for DPLs are updated on a retrospective catch-up basis at the same time as the cash flow estimates for the related LFPBs. The updated LFPB cash flows are used to recalculate the DPL at the inception of the applicable related LFPB cohort. The difference between the recalculated DPL at the beginning of the current reporting period and the carrying amount of the DPL at the current reporting period is recognized as a gain or loss in policyholder benefits in the Consolidated Statements of Income (Loss).
Additional Liabilities: For universal-life type products, insurance benefits in excess of the account balance are generally recognized as expenses in the period incurred unless the design of the product is such that future charges are insufficient to cover the benefits, in which case an “additional liability” is accrued over the life of the contract. These additional liabilities are included in Future policy benefits for life and accident and health insurance contracts in the Consolidated Balance Sheets.
Our additional liabilities include universal life policies with secondary guarantees and these additional liabilities are recognized in addition to the Policyholder account balances. For universal life policies with secondary guarantees, as well as other universal life policies for which profits followed by losses are expected at contract inception, a liability is recognized based on a benefit ratio of (a) the present value of total expected payments, in excess of the account value, over the life of the contract, divided by (b) the present value of total expected assessments over the life of the contract. For universal life policies without secondary guarantees, for which profits followed by losses are first expected after contract inception, we establish a liability, in addition to policyholder account balances, so that expected future losses are recognized in proportion to the emergence of profits in the earlier (profitable) years. Universal life account balances are reported within Policyholder contract deposits, while these additional liabilities are reported within the liability for future policy benefits in the Consolidated Balance Sheets. These additional liabilities are also adjusted to reflect the effect of unrealized gains or losses on fixed maturity securities available-for-sale on accumulated assessments, with related changes recognized through OCI. The policyholder behavior assumptions for these liabilities include mortality, lapses and premium persistency. The capital market assumptions used for the liability for universal life policies include discount rates and net earned rates.
The following table presents the balances and changes in the liability for universal life policies:
Years Ended December 31,
202520242023
Life
Insurance		Corporate and OtherTotalLife
Insurance		Corporate and OtherTotalLife
Insurance		Corporate and OtherTotal
(in millions, except duration of liability)
Balance, beginning of year$4,034 $54 $4,088 $3,731 $55 $3,786 $3,300 $55 $3,355 
Effect of changes in assumptions54 — 54 38 — 38 (41)— (41)
Effect of changes in experience406 (4)402 365 (4)361 319 (4)315 
Adjusted beginning balance$4,494 $50 $4,544 $4,134 $51 $4,185 $3,578 $51 $3,629 
Assessments653 2 655 586 1 587 671 2 673 
Excess benefits paid(1,124)— (1,124)(902)— (902)(943)— (943)
Interest accrual163 2 165 161 2 163 132 2 134 
Other(9)— (9)(5)— (5)(9)— (9)
Changes related to unrealized appreciation (depreciation) of investments64 — 64 60 — 60 302 — 302 
Balance, end of year$4,241 $54 $4,295 $4,034 $54 $4,088 $3,731 $55 $3,786 
Less: Reinsurance recoverable(166)(54)(220)(156)(54)(210)(164)— (164)
Balance, end of year net of Reinsurance recoverable$4,075 $— $4,075 $3,878 $— $3,878 $3,567 $55 $3,622 
Weighted average duration of liability *
26.28.623.98.925.49.2
*The weighted average duration of liabilities is calculated as the modified duration using projected future net liability cashflows that are aggregated at the segment level, utilizing the segment level weighted average interest rates, which can be found in the table below.
The following table presents the amount of revenue and interest recognized in the Consolidated Statements of Income (Loss) for the liability for universal life policies:
Gross AssessmentsInterest Accretion
Years Ended December 31,Years Ended December 31,
(in millions)202520242023202520242023
Life Insurance$1,070 $994 $1,109 $163 $161 $132 
Corporate and Other37 39 37 2 2 2 
Total$1,107 $1,033 $1,146 $165 $163 $134 
The following table presents the calculation of weighted average interest rate for the liability for universal life policies:
December 31,202520242023
Life
Insurance		Corporate and OtherLife
Insurance		Corporate and OtherLife
Insurance		Corporate and Other
Weighted-average interest rate3.97 %4.20 %4.12 %4.20 %3.92 %4.20 %
The weighted average interest rates are calculated using projected future net liability cash flows that are aggregated to the segment level, and are represented as an annual rate.
The following table presents details concerning our universal life policies:
Years Ended December 31,
(in millions, except for attained age of contract holders)20252024
Account value$4,242$3,988
Net amount at risk$78,295$75,886
Average attained age of contract holders5453
Actuarial Assumption Updates for Liability for universal life policies
In 2025, Corebridge recognized an unfavorable impact to net income primarily due to lapse updates for certain universal life products. In 2024, Corebridge recognized an unfavorable impact to net income due to lapse and mortality updates for universal life policies, offset by yield and spread updates. In 2023, Corebridge recognized a favorable impact to net income due to updates to the portfolio yield assumption and refinements to the modeling for universal life policies, partially offset by updated premium assumptions.