| Long-duration insurance contracts |
(18)Long-duration insurance contracts 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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December 31, |
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2025 |
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2024 |
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Periodic payment annuity (“Annuities”) |
$ |
10,441 |
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$ |
10,276 |
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Life and health |
|
4,540 |
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|
4,490 |
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Other |
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2,909 |
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2,850 |
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$ |
17,890 |
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$ |
17,616 |
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Notes to Consolidated Financial Statements (18)Long-duration insurance contracts Reconciliations of the liabilities for each of our principal product categories for each of the two years ended December 31, 2025 follow (in millions). This information reflects the changes in discounted present values of expected future policy benefits and expected future net premiums before reinsurance ceded. 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 |
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Life and health |
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2025 |
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2024 |
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2025 |
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2024 |
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Expected future policy benefits: |
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Balance at the beginning of the year |
$ |
10,276 |
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|
$ |
11,212 |
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|
$ |
43,784 |
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$ |
52,665 |
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Balance at the beginning of the year - original discount rates |
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11,757 |
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11,681 |
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55,170 |
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65,871 |
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Effects of cash flow assumption changes |
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21 |
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— |
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80 |
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(348 |
) |
Effects of actual versus expected experience |
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(14 |
) |
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3 |
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1,161 |
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(12,711 |
) |
Change in benefits, net |
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(499 |
) |
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(478 |
) |
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|
2,138 |
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|
1,991 |
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Interest accrual |
|
557 |
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|
550 |
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1,362 |
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|
1,234 |
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Foreign currency effect |
|
108 |
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1 |
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1,336 |
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(867 |
) |
Balance at December 31 - original discount rates |
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11,930 |
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11,757 |
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61,247 |
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55,170 |
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Effects of changes in discount rate assumptions |
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(1,489 |
) |
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(1,481 |
) |
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(13,123 |
) |
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(11,386 |
) |
Balance at December 31 |
$ |
10,441 |
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|
$ |
10,276 |
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$ |
48,124 |
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$ |
43,784 |
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Expected future net premiums: |
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Balance at the beginning of the year |
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$ |
39,294 |
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$ |
46,916 |
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Balance at the beginning of the year - original discount rates |
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49,500 |
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|
58,731 |
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Effects of cash flow assumption changes |
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156 |
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(416 |
) |
Effects of actual versus expected experience |
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1,112 |
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(11,104 |
) |
Change in premiums, net |
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2,135 |
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|
1,984 |
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Interest accrual |
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1,227 |
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|
1,099 |
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Foreign currency effect |
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1,229 |
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(794 |
) |
Balance at December 31 - original discount rates |
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55,359 |
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|
49,500 |
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Effects of changes in discount rate assumptions |
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(11,775 |
) |
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(10,206 |
) |
Balance at December 31 |
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$ |
43,584 |
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$ |
39,294 |
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Liability for future policy benefits: |
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Balance at December 31 |
$ |
10,441 |
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$ |
10,276 |
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$ |
4,540 |
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$ |
4,490 |
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Reinsurance recoverables |
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— |
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— |
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(49 |
) |
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(46 |
) |
Balance at December 31, net of reinsurance recoverables |
$ |
10,441 |
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$ |
10,276 |
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$ |
4,491 |
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$ |
4,444 |
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Expected future policy benefits and expected future net premiums declined in 2024, primarily attributable to life reinsurance contract commutations. The impacts of these contract commutations were included in the effects of actual versus expected experience. Other information relating to our long-duration insurance liabilities as of December 31, 2025 and 2024 follows (dollars in millions).
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Annuities |
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Life and health |
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2025 |
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2024 |
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|
2025 |
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|
2024 |
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Undiscounted expected future gross premiums |
$ |
— |
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$ |
— |
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$ |
113,118 |
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$ |
100,413 |
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Discounted expected future gross premiums |
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— |
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— |
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68,808 |
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|
58,881 |
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Undiscounted expected future benefits |
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32,552 |
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30,592 |
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101,207 |
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91,493 |
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Weighted average discount rate |
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5.7 |
% |
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5.8 |
% |
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5.1 |
% |
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4.9 |
% |
Weighted average accretion rate |
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4.8 |
% |
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4.8 |
% |
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2.6 |
% |
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2.7 |
% |
Weighted average duration |
15 years |
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16 years |
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14 years |
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13 years |
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Notes to Consolidated Financial Statements (18)Long-duration insurance contracts Gross premiums earned and interest expense before reinsurance ceded for each of the two years ended December 31, 2025 follows (in millions).
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Gross Premiums |
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Interest Expense |
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2025 |
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2024 |
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|
2025 |
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2024 |
|
Annuities |
$ |
— |
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|
$ |
— |
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$ |
557 |
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$ |
550 |
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Life and health |
|
3,994 |
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|
3,830 |
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|
135 |
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|
135 |
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