Future Contract Benefits

12 Months Ended

Dec. 31, 2025

Liability for Future Policy Benefits and Unpaid Claims and Claims Adjustment Expense [Abstract]

The following table reconciles future contract benefits (in millions) to the Consolidated Balance Sheets:


	As of December 31,
	2025		2024
Payout Annuities (1)	$	2,036	$	2,008
Traditional Life (1)	3,521		3,504
Group Protection (2)	5,836		5,628
UL and Other (3)	18,597		16,663
Other Operations (4)	9,076		8,958
Other (5)	3,294		3,241
Total future contract benefits	$	42,360	$	40,002

(1) See “LFPB” below for further information.

(2) See “Liability for Future Claims” below for further information.

(3) See “Additional Liabilities for Other Insurance Benefits” below for further information.

(4) Represents future contract benefits reported in Other Operations primarily attributable to the indemnity reinsurance agreements with Protective ($5.4 billion as of December 31, 2025 and 2024) and Swiss Re ($1.9 billion and $1.7 billion as of December 31, 2025 and 2024, respectively) that are excluded from the following tables.

(5) Represents other miscellaneous reserves that are not representative of long-duration contracts, primarily related to participating traditional life insurance contracts and incurred but not reported and in course of settlement life insurance liabilities, and are excluded from the following tables.

LFPB

The LFPB represents reserves associated with our limited payment life-contingent annuities and non-participating traditional life insurance contracts (i.e., term insurance). The reserve is the net of present value of expected future policy benefits less present value of expected net premiums as summarized in the following table (in millions, except years):


	As of or For the Year Ended December 31, 2025				As of or For the Year Ended December 31, 2024
	Payout Annuities		Traditional Life		Payout Annuities		Traditional Life


Present Value of Expected Net Premiums
Balance as of beginning-of-year	$	–	$	5,751	$	–	$	6,084
Less: Effect of cumulative changes in discount
rate assumptions	–		(277)		–		(152)
Beginning balance at original discount rate	–		6,028		–		6,236
Effect of changes in cash flow assumptions (1)	–		(396)		–		(3)
Effect of actual variances from expected experience (2)	–		(38)		–		(45)
Adjusted balance as of beginning-of-year	–		5,594		–		6,188
Issuances	–		282		–		361
Interest accrual	–		233		–		245
Net premiums collected	–		(728)		–		(766)
Flooring impact of LFPB	–		(3)		–		–
Ending balance at original discount rate	–		5,378		–		6,028
Effect of cumulative changes in discount rate assumptions	–		(92)		–		(277)
Balance as of end-of-year	$	–	$	5,286	$	–	$	5,751

Present Value of Expected Future Policy Benefits
Balance as of beginning-of-year	$	2,008	$	9,255	$	2,084	$	9,637
Less: Effect of cumulative changes in discount
rate assumptions	(251)		(446)		(187)		(202)
Beginning balance at original discount rate (3)	2,259		9,701		2,271		9,839
Effect of changes in cash flow assumptions (1)	(8)		(557)		–		(105)
Effect of actual variances from expected experience (2)	(13)		(31)		3		(68)
Adjusted balance as of beginning-of-year	2,238		9,113		2,274		9,666
Issuances	98		282		102		361
Interest accrual	88		368		87		380
Benefit payments	(206)		(802)		(204)		(706)
Ending balance at original discount rate (3)	2,218		8,961		2,259		9,701
Effect of cumulative changes in discount rate assumptions	(182)		(154)		(251)		(446)
Balance as of end-of-year	$	2,036	$	8,807	$	2,008	$	9,255

Net balance as of end-of-year	$	2,036	$	3,521	$	2,008	$	3,504
Less: Reinsurance recoverables	1,451		179		1,488		217
Net balance as of end-of-year, net of reinsurance	$	585	$	3,342	$	520	$	3,287

Weighted-average duration of future policyholder
benefit liability (years)	8		9		9		9

(1) The cash flow assumption impact to the liability is calculated as the present value of expected future policy benefits less the present value of expected net premiums. For the years ended December 31, 2025 and 2024, the Traditional Life net effect of changes in cash flow assumptions gross of reinsurance reduced the liability by $161 million and $102 million, respectively, primarily associated with favorable updates to mortality assumptions. See “Effect of Annual Assumption Review” below for more information.

(2) For the year ended December 31, 2025, the Traditional Life actual to expected reserve impact on expected net premiums was attributable primarily to mortality and policyholder behavior, which unfavorably impacted the liability by $22 million and $16 million,

respectively; and the actual to expected reserve impact on expected future policy benefits was attributable primarily to policyholder behavior and mortality, which favorably impacted the liability by $17 million and $14 million, respectively. For the year ended December 31, 2024, the Traditional Life actual to expected reserve impact on expected net premiums was attributable primarily to mortality, which unfavorably impacted the liability by $60 million, which was partially offset by $15 million primarily related to policyholder behavior; and the actual to expected reserve impact on expected future policy benefits was attributable primarily to mortality, which favorably impacted the liability by $96 million, which was partially offset by $28 million primarily related to policyholder behavior. For the years ended December 31, 2025 and 2024, Payout Annuities did not have any significantly different actual experience compared to expected.

(3) Includes deferred profit liability within Payout Annuities of $92 million, $62 million and $56 million as of December 31, 2025, 2024 and 2023, respectively.

Effect of Annual Assumption Review

For the year ended December 31, 2025, Payout Annuities did not have a significant cash flow assumption impact to net income (loss) attributable to the annual assumption review, and Traditional Life had a favorable cash flow assumption impact from updates to mortality and policyholder behavior assumptions.

For the year ended December 31, 2024, Payout Annuities did not have a significant cash flow assumption impact to net income (loss) attributable to the annual assumption review, and Traditional Life had a favorable cash flow assumption impact from updates to mortality assumptions, partially offset by an unfavorable impact from updates to policyholder behavior assumptions.

The following table summarizes the discounted and undiscounted expected future gross premiums and expected future benefit payments (in millions):


	As of December 31, 2025				As of December 31, 2024
	Undiscounted		Discounted		Undiscounted		Discounted
Payout Annuities
Expected future gross premiums	$	–	$	–	$	–	$	–
Expected future benefit payments	3,271		2,036		3,427		2,008
Traditional Life
Expected future gross premiums	12,735		8,869		13,498		9,075
Expected future benefit payments	12,655		8,807		13,857		9,255

The following table summarizes the gross premiums and interest accretion (in millions) recognized in insurance premiums and benefits, respectively, on the Consolidated Statements of Comprehensive Income (Loss):


	For the Years Ended December 31,
	2025		2024		2023
Payout Annuities
Gross premiums	$	99	$	108	$	116
Interest accretion	88		87		86
Traditional Life
Gross premiums	1,184		1,189		1,183
Interest accretion	135		135		128

The following table summarizes the weighted-average interest rates:


	For the Years Ended December 31,
	2025		2024
Payout Annuities
Interest accretion rate	4.0	%	4.0	%
Current discount rate	5.1	%	5.4	%
Traditional Life
Interest accretion rate	4.9	%	4.9	%
Current discount rate	4.7	%	5.1	%

Liability for Future Claims

The liability for future claims represents reserves associated with our group long-term disability and life waiver products. The following table summarizes the balances of and changes in liability for future claims (in millions, except years):


	Group Protection
	As of or For the Years Ended December 31,
	2025		2024
Balance as of beginning-of-year	$	5,628	$	5,689
Less: Effect of cumulative changes in discount
rate assumptions	(550)		(490)
Beginning balance at original discount rate	6,178		6,179
Effect of changes in cash flow assumptions	(66)		(2)
Effect of actual variances from expected
experience (1)	(242)		(345)
Adjusted beginning-of-year balance	5,870		5,832
New incidence	1,574		1,641
Interest	195		181
Benefit payments	(1,440)		(1,476)
Ending balance at original discount rate	6,199		6,178
Effect of cumulative changes in discount
rate assumptions	(363)		(550)
Balance as of end-of-year	5,836		5,628
Less: Reinsurance recoverables	3,975		3,771
Balance as of end-of-year, net of reinsurance	$	1,861	$	1,857

Weighted-average duration of liability for future
claims (years)	5		5

(1) Generally, the experience exhibited for the Group Protection business relates to morbidity and, to a lesser extent, mortality. Group Protection long-duration products have limited exposure to lapse risk, as the liabilities for future claims are limited to those associated with claim reserves. For the years ended December 31, 2025 and 2024, morbidity comprised substantially all of the favorable effect of actual variances from expected experience, as our claims experience was more favorable than assumed.

Effect of Annual Assumption Review

For the year ended December 31, 2025, we had a favorable cash flow assumption impact to net income (loss) attributable to the annual assumption review from updates to the claim termination rate assumption, partially offset by updates to social security and incurred assumptions.

For the year ended December 31, 2024, we did not have a significant cash flow assumption impact to net income (loss) attributable to the annual assumption review.

The following table summarizes the discounted and undiscounted expected future benefit payments (in millions):


	As of December 31, 2025				As of December 31, 2024
	Undiscounted		Discounted		Undiscounted		Discounted
Group Protection
Expected future benefit payments	$	7,506	$	5,836	$	7,368	$	5,628


	For the Years Ended December 31,
	2025		2024		2023
Group Protection
Gross premiums	$	3,719	$	3,563	$	3,549
Interest accretion	195		181		159

The following table summarizes the weighted-average interest rates:


	For the Years Ended December 31,
	2025		2024
Group Protection
Interest accretion rate	3.6	%	3.3	%
Current discount rate	4.7	%	5.1	%

Additional Liabilities for Other Insurance Benefits

Additional liabilities for other insurance benefits represent reserves associated with our UL and VUL contracts with secondary guarantees, including MoneyGuard®. The following table summarizes the balances of and changes in additional liabilities for other insurance benefits (in millions, except years):


	UL and Other
	As of or For the Years Ended December 31,
	2025		2024
Balance as of beginning-of-year	$	16,663	$	15,752
Less: Effect of cumulative changes in shadow
balance in AOCI	(1,515)		(853)
Balance as of beginning-of-year, excluding
shadow balance in AOCI	18,178		16,605
Effect of changes in cash flow assumptions	120		207
Effect of actual variances from expected
experience (1)(2)	190		288
Adjusted beginning-of-year balance	18,488		17,100

Interest accrual	923		841
Net assessments collected	1,348		1,288
Benefit payments	(1,076)		(1,051)
Balance as of end-of-year, excluding
shadow balance in AOCI	19,683		18,178
Effect of cumulative changes in shadow
balance in AOCI	(1,086)		(1,515)
Balance as of end-of-year	18,597		16,663
Less: Reinsurance recoverables	11,789		10,748
Balance as of end-of-year, net of reinsurance	$	6,808	$	5,915

Weighted-average duration of additional liabilities
for other insurance benefits (years)	16		16

(1) For the years ended December 31, 2025 and 2024, the actual to expected reserve impact was attributable primarily to mortality, which unfavorably impacted the liability by $201 million and $273 million, respectively.

(2) For the years ended December 31, 2025 and 2024, the effect of actual variances from expected experience, net of reinsurance, was $93 million and $157 million, respectively.

Effect of Annual Assumption Review

For the year ended December 31, 2025, we had an unfavorable cash flow assumption impact to net income (loss) attributable to the annual assumption review from updates to mortality and policyholder behavior assumptions, partially offset by updates to the morbidity assumption.

For the year ended December 31, 2024, we had an unfavorable cash flow assumption impact to net income (loss) attributable to the annual assumption review from updates to policyholder behavior and mortality assumptions that were partially offset by updates to capital market assumptions

The following table summarizes the gross assessments and interest accretion (in millions) recognized in insurance premiums and benefits, respectively, on the Consolidated Statements of Comprehensive Income (Loss):


	For the Years Ended December 31,
	2025		2024		2023
UL and Other
Gross assessments	$	3,159	$	3,093	$	1,221
Interest accretion	923		841		765

The following table summarizes the weighted-average interest rates:


	For the Years Ended December 31,
	2025		2024
UL and Other
Interest accretion rate	5.5	%	5.4	%