| 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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December 31, |
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2025 |
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|
2024 |
|
Periodic payment annuity (“Annuities”) |
$ |
10,441 |
|
|
$ |
10,276 |
|
Life and health |
|
4,540 |
|
|
|
4,490 |
|
Other |
|
2,909 |
|
|
|
2,850 |
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|
$ |
17,890 |
|
|
$ |
17,616 |
|
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| 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 |
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Life and health |
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2025 |
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|
2024 |
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|
2025 |
|
|
2024 |
|
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 |
|
Balance at the beginning of the year - original discount rates |
|
11,757 |
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|
|
11,681 |
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|
55,170 |
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|
65,871 |
|
Effects of cash flow assumption changes |
|
21 |
|
|
|
— |
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|
80 |
|
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(348 |
) |
Effects of actual versus expected experience |
|
(14 |
) |
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|
3 |
|
|
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1,161 |
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(12,711 |
) |
Change in benefits, net |
|
(499 |
) |
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|
(478 |
) |
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|
2,138 |
|
|
|
1,991 |
|
Interest accrual |
|
557 |
|
|
|
550 |
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|
|
1,362 |
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|
|
1,234 |
|
Foreign currency effect |
|
108 |
|
|
|
1 |
|
|
|
1,336 |
|
|
|
(867 |
) |
Balance at December 31 - original discount rates |
|
11,930 |
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|
|
11,757 |
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|
61,247 |
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|
|
55,170 |
|
Effects of changes in discount rate assumptions |
|
(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 |
|
|
$ |
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 |
|
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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|
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|
156 |
|
|
|
(416 |
) |
Effects of actual versus expected experience |
|
|
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|
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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 |
|
Interest accrual |
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|
1,227 |
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|
1,099 |
|
Foreign currency effect |
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|
1,229 |
|
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|
(794 |
) |
Balance at December 31 - original discount rates |
|
|
|
|
|
|
|
55,359 |
|
|
|
49,500 |
|
Effects of changes in discount rate assumptions |
|
|
|
|
|
|
|
(11,775 |
) |
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|
(10,206 |
) |
Balance at December 31 |
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|
|
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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 |
|
|
$ |
4,490 |
|
Reinsurance recoverables |
|
— |
|
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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 |
|
Expected future policy benefits and expected future net premiums
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| Summary of Other Information Relating to Long-Duration Insurance Liabilities |
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 |
|
|
2024 |
|
Undiscounted expected future gross premiums |
$ |
— |
|
|
$ |
— |
|
|
$ |
113,118 |
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|
$ |
100,413 |
|
Discounted expected future gross premiums |
|
— |
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|
|
— |
|
|
|
68,808 |
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|
|
58,881 |
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Undiscounted expected future benefits |
|
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 |
|
5.7 |
% |
|
|
5.8 |
% |
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|
5.1 |
% |
|
|
4.9 |
% |
Weighted average accretion rate |
|
4.8 |
% |
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|
4.8 |
% |
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2.6 |
% |
|
|
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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