Additional Insurance Liabilities

3 Months Ended

Mar. 31, 2026

(10) Additional Insurance Liabilities

The following table presents the balances of and changes in additional liabilities related to death or other insurance benefits that are included within policyholder account balances related to universal and term universal life insurance products as of and for the periods indicated:



(Dollar amounts in millions)	March 31, 2026		December 31, 2025
Beginning balance as of January 1	$	2,986	$	2,920
Beginning balance before shadow accounting adjustments	$	3,052	$	3,003
Effect of changes in cash flow assumptions	—		(15)
Effect of actual variances from expected experience	2		11
Adjusted beginning balance	3,054		2,999
Issuances	—		—
Interest accretion	26		102
Assessments collected	56		230
Benefit payments	(66)		(279)
Derecognition (lapses and withdrawals)	—		—
Other (flooring adjustment)	—		—
Ending balance before shadow accounting adjustments	3,070		3,052
Effect of shadow accounting adjustments	(77)		(66)
Ending balance	2,993		2,986
Less: reinsurance recoverable	—		—
Additional insurance liabilities, net of reinsurance recoverable	$	2,993	$	2,986
Weighted-average liability duration (years)	16.6		16.8

In the fourth quarter of 2025, as part of our annual review of assumptions, we decreased our additional insurance liabilities primarily related to favorable updates to interest rate assumptions given the recent rate environment. The increase in our additional insurance liabilities from the effect of actual variances from expected experience during the year ended December 31, 2025 was primarily driven by unfavorable mortality.

The following table provides the weighted-average interest rates for our additional insurance liabilities as of the dates indicated:



	March 31, 2026		December 31, 2025
Interest accretion rate (1)	3.4	%	3.4	%
Projected crediting rate (2)	3.9	%	3.9	%

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(1)The interest accretion rate is determined by using the weighted-average policyholder crediting rates for the underlying policies over the period in-force, and based on the adjusted beginning balance, is used to measure the amount of interest accretion.

(2)The projected crediting rate is determined by using a future crediting rate curve that utilizes a portfolio approach reflecting anticipated reinvestment activity and runoff of existing assets over the projection period. The projected crediting rate is used to discount future assessments and excess benefits.

The following table sets forth the amount of revenue and interest accretion (expense) recognized in net income (loss) related to additional insurance liabilities for the periods indicated:


	Three months ended March 31,				Year ended December 31, 2025
(Amounts in millions)	2026		2025
Gross assessments	$	127	$	132		$	513
Interest accretion (1)	$	26	$	25		$	102

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(1)Amounts for interest accretion are included in benefits and other changes in policy reserves in the condensed consolidated statements of operations.