| Schedule of Market Risk Benefit, Activity |
Components of the Company’s reinsurance recoverable on market risk benefits were as follows (in millions):
| | | | | | | | | | | | | March 31, | | December 31, | | 2026 | | 2025 | | Variable annuity | $ | 43 | | | $ | 41 | | | Other product lines | 78 | | | 77 | | | Total | $ | 121 | | | $ | 118 | |
The following table presents a roll-forward of Closed Block Life additional liabilities for annuitization, death and other insurance benefits (in millions):
| | | | | | | | | | | | | Three Months Ended March 31, 2026 | | Year Ended December 31, 2025 | | Balance, beginning of period | $ | 1,195 | | | $ | 1,184 | | | Beginning of period cumulative effect of changes in shadow adjustments | 14 | | | 23 | | | Beginning balance excluding shadow | 1,209 | | | 1,207 | | | Effect of changes in cash flow assumptions | — | | | 5 | | | Effect of actual variances from expected experience | 5 | | | 33 | | | | | | | Interest accrual | 14 | | | 58 | | | Net assessments collected | (32) | | | (94) | | | | | | | Ending balance excluding shadow | 1,196 | | | 1,209 | | | End of period cumulative effect of changes in shadow adjustments | (21) | | | (14) | | | Balance, end of period | $ | 1,175 | | | $ | 1,195 | |
The following table presents the weighted average duration of Closed Block Life additional liabilities for annuitization, death and other insurance benefits. The weighted average duration represents average cohort-level duration weighted by the benefit reserves amount:
| | | | | | | | | | | | | March 31, 2026 | | December 31, 2025 | | Weighted average duration (years) | 8.7 | | 8.7 |
The following table presents assessments and interest expense of Closed Block Life additional liabilities for annuitization, death and other insurance benefits recognized in the Condensed Consolidated Income Statements (in millions):
| | | | | | | | | | | | | | | | | | | | | | | | | Assessments | | Interest Expense | | Three Months Ended March 31, 2026 | | Year Ended December 31, 2025 | | Three Months Ended March 31, 2026 | | Year Ended December 31, 2025 | | Additional liability for annuitization, death and other insurance benefits | $ | (32) | | | $ | (94) | | | $ | 14 | | | $ | 58 | |
The following table presents the weighted average current discount rate of Closed Block Life additional liabilities for annuitization, death and other insurance benefits, applied at the cohort level weighted by reserve benefit amount:
| | | | | | | | | | | | | March 31, 2026 | | December 31, 2025 | | Weighted average current discount rate | 5.00 | % | | 5.00 | % |
The following table presents the reconciliation of the market risk benefits balance in the Condensed Consolidated Balance Sheets (in millions):
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | March 31, 2026 | | December 31, 2025 | | Variable | | Other | | | | Variable | | Other | | | | Annuities | | Product Lines | | Total | | Annuities | | Product Lines | | Total | | Market risk benefit - (assets) | $ | (6,698) | | | $ | (3) | | | $ | (6,701) | | | $ | (7,863) | | | $ | (4) | | | $ | (7,867) | | | Market risk benefit - liabilities | 3,764 | | | 207 | | | 3,971 | | | 3,598 | | | 156 | | | 3,754 | | | Market risk benefit - net (asset) liability | $ | (2,934) | | | $ | 204 | | | $ | (2,730) | | | $ | (4,265) | | | $ | 152 | | | $ | (4,113) | |
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| Schedule of Roll forward of the Separate Account Balance |
The following table presents the roll-forward of the separate account balance for variable annuities (in millions):
| | | | | | | | | | | | | Three Months Ended March 31, 2026 | | Year Ended December 31, 2025 | | Balance as of beginning of period | $ | 236,406 | | $ | 228,851 | Deposits (1) | 2,317 | | 9,998 | Surrenders, withdrawals and benefits (1) | (6,955) | | (27,633) | | Net transfer from (to) general account | (134) | | (372) | | Investment performance | (7,603) | | 28,278 | | Policy charges and other | (666) | | (2,716) | | Balance as of end of period, gross | $ | 223,365 | | $ | 236,406 | | | | | | | | | | | | | Cash surrender value (2) | $ | 218,733 | | $ | 231,711 |
(1) Excludes certain internal exchanges. (2) Cash surrender value represents the amount of the contract holder’s account balances distributable at the balance sheet date less applicable surrender charges. The following table presents the roll-forward of the net MRB (assets) liabilities for variable annuities (dollars in millions):
| | | | | | | | | | | | | Three Months Ended March 31, 2026 | | Year Ended December 31, 2025 | | Net MRB balance, beginning of period | $ | (4,265) | | | $ | (5,176) | | | Beginning of period cumulative effect of changes in non-performance risk | (17) | | | 314 | | | Net MRB balance, beginning of period, before effect of changes in non-performance risk | (4,282) | | | (4,862) | | | Effect of changes in interest rates | (407) | | | (72) | | | Effect of fund performance | 671 | | | (3,518) | | | Effect of changes in equity index volatility | 551 | | | 509 | | | Effect of expected policyholder behavior | 215 | | | 758 | | | Effect of actual policyholder behavior different from expected | 110 | | | 572 | | | Effect of time | 508 | | | 1,957 | | | Effect of changes in assumptions | 3 | | | 374 | | | Net MRB balance, end of period, before effect of changes in non-performance risk | (2,631) | | | (4,282) | | | End of period cumulative effect of changes in non-performance risk | (303) | | | 17 | | | Net MRB balance, end of period, gross | (2,934) | | | (4,265) | | | | | | | Reinsurance recoverable on market risk benefits at fair value, end of period | (43) | | | (41) | | | Net MRB balance, end of period, net of reinsurance | (2,977) | | | (4,306) | | | | | | Weighted average attained age (years) (1) | 71 | | 70 | Net amount at risk (2) | $ | 7,193 | | | $ | 5,471 | |
(1) Weighted-average attained age is defined as the average age of policyholders weighted by account value. (2) Net amount at risk (NAR) is defined as of the valuation date for each contract as the greater of Death Benefit NAR (DBNAR) and Living Benefit NAR (LBNAR), as applicable, where DBNAR is the GMDB benefit base in excess of the account value, and LBNAR is the actuarial present value of guaranteed living benefits in excess of the account value.
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