v3.25.4
Future Contract Benefits (Tables)
 12 Months Ended
Dec. 31, 2025
Liability for Future Policy Benefits and Unpaid Claims and Claims Adjustment Expense [Abstract]  
Summary of Reconciliation of Future Contract Benefits
The following table reconciles future contract benefits (in millions) to the Consolidated Balance Sheets:

As of December 31,
20252024
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 $1.7 billion as of December 31, 2025 and 2024, respectively) that are excluded from the following tables.
(5) Represents other miscellaneous reserves that are not representative of long-duration contracts, primarily related to participating traditional life insurance contracts and incurred but not reported and in course of settlement life insurance liabilities, and are excluded from the following tables.
Liability for Future Policy Benefit, Activity The reserve is the net of present value of expected future policy benefits less present value of expected net premiums as summarized in the following table (in millions, except years):
As of or For the Year Ended December 31, 2025As of or For the Year Ended December 31, 2024
Payout AnnuitiesTraditional LifePayout AnnuitiesTraditional Life
Present Value of Expected Net Premiums
Balance as of beginning-of-year$– $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-year2,238 9,113 2,274 9,666 
Issuances98 282 102 361 
Interest accrual88 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 recoverables1,451 179 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)8999

(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
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,
20252024
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 rate6,178 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 balance5,870 5,832 
New incidence1,574 1,641 
Interest195 181 
Benefit payments(1,440)(1,476)
Ending balance at original discount rate6,199 6,178 
Effect of cumulative changes in discount
rate assumptions(363)(550)
Balance as of end-of-year5,836 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)55

(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.
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,
20252024
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 AOCI18,178 16,605 
Effect of changes in cash flow assumptions120 207 
Effect of actual variances from expected
experience (1)(2)
190 288 
Adjusted beginning-of-year balance18,488 17,100 
Interest accrual923 841 
Net assessments collected1,348 1,288 
Benefit payments(1,076)(1,051)
Balance as of end-of-year, excluding
shadow balance in AOCI19,683 18,178 
Effect of cumulative changes in shadow
balance in AOCI(1,086)(1,515)
Balance as of end-of-year18,597 16,663 
Less: Reinsurance recoverables11,789 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)1616

(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.
Summary of Discounted and Undiscounted Expected Future Gross premiums and Expected Future Benefit Payments
The following table summarizes the discounted and undiscounted expected future gross premiums and expected future benefit payments (in millions):

As of December 31, 2025As of December 31, 2024
UndiscountedDiscountedUndiscountedDiscounted
Payout Annuities
Expected future gross premiums$– $– $– $– 
Expected future benefit payments3,271 2,036 3,427 2,008 
Traditional Life
Expected future gross premiums12,735 8,869 13,498 9,075 
Expected future benefit payments12,655 8,807 13,857 9,255 
The following table summarizes the discounted and undiscounted expected future benefit payments (in millions):

As of December 31, 2025As of December 31, 2024
UndiscountedDiscountedUndiscountedDiscounted
Group Protection
Expected future benefit payments$7,506 $5,836 $7,368 $5,628 
Summary of Gross Premiums and Interest Accretion
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,
202520242023
Payout Annuities
Gross premiums$99 $108 $116 
Interest accretion88 87 86 
Traditional Life
Gross premiums1,184 1,189 1,183 
Interest accretion135 135 128 
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,
202520242023
Group Protection
Gross premiums$3,719 $3,563 $3,549 
Interest accretion195 181 159 
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,
202520242023
UL and Other
Gross assessments$3,159 $3,093 $1,221 
Interest accretion923 841 765 
Summary of Weighted-Average Interest Rates
The following table summarizes the weighted-average interest rates:
For the Years Ended
December 31,
20252024
Payout Annuities
Interest accretion rate4.0 %4.0 %
Current discount rate5.1 %5.4 %
Traditional Life
Interest accretion rate4.9 %4.9 %
Current discount rate4.7 %5.1 %
The following table summarizes the weighted-average interest rates:

For the Years Ended
December 31,
20252024
Group Protection
Interest accretion rate3.6 %3.3 %
Current discount rate4.7 %5.1 %
The following table summarizes the weighted-average interest rates:

For the Years Ended
December 31,
20252024
UL and Other
Interest accretion rate5.5 %5.4 %