| Schedule of Liability for Future Policy Benefit Activity |
The following tables present the balances of and changes in the liability for future policy benefits as of and for the periods indicated: | | | | | | | | | | | | | | | | | | | | | March 31, 2026 | | (Dollar amounts in millions) | Long-term
care insurance | | Life
insurance | | Fixed
annuities | | Present value of expected net premiums: | | | | | | | Beginning balance as of January 1 | $ | 16,480 | | | $ | 3,499 | | | $ | — | | | Beginning balance, at original discount rate | $ | 16,411 | | | $ | 3,396 | | | $ | — | | | Effect of changes in cash flow assumptions | 15 | | | — | | | — | | | Effect of actual variances from expected experience | 14 | | | 4 | | | — | | | Adjusted beginning balance | 16,440 | | | 3,400 | | | — | | | Issuances | — | | | — | | | 9 | | | Interest accretion | 207 | | | 47 | | | — | | Net premiums collected (1) | (462) | | | (99) | | | (9) | | | Derecognition (lapses and withdrawals) | — | | | — | | | — | | | Other | — | | | — | | | — | | | Ending balance, at original discount rate | 16,185 | | | 3,348 | | | — | | | Effect of changes in discount rate assumptions | (164) | | | 42 | | | — | | | Ending balance as of March 31 | $ | 16,021 | | | $ | 3,390 | | | $ | — | | | Present value of expected future policy benefits: | | | | | | | Beginning balance as of January 1 | $ | 59,634 | | | $ | 4,354 | | | $ | 10,437 | | | Beginning balance, at original discount rate | $ | 60,539 | | | $ | 4,191 | | | $ | 9,193 | | | Effect of changes in cash flow assumptions | (2) | | | — | | | — | | | Effect of actual variances from expected experience | 50 | | | 24 | | | (28) | | | Adjusted beginning balance | 60,587 | | | 4,215 | | | 9,165 | | | Issuances | — | | | — | | | 9 | | | Interest accretion | 818 | | | 55 | | | 151 | | | Benefit payments | (925) | | | (173) | | | (232) | | | Derecognition (lapses and withdrawals) | — | | | — | | | — | | | Other | — | | | — | | | 2 | | | Ending balance, at original discount rate | 60,480 | | | 4,097 | | | 9,095 | | | Effect of changes in discount rate assumptions | (2,083) | | | 103 | | | 1,032 | | | Ending balance as of March 31 | $ | 58,397 | | | $ | 4,200 | | | $ | 10,127 | | | Net liability for future policy benefits, before flooring adjustments | $ | 42,376 | | | $ | 810 | | | $ | 10,127 | | Flooring adjustments (2) | 2 | | | 606 | | | — | | | Net liability for future policy benefits | 42,378 | | | 1,416 | | | 10,127 | | | Less: reinsurance recoverable | 7,542 | | | 678 | | | 7,841 | | | Net liability for future policy benefits, net of reinsurance recoverable | $ | 34,836 | | | $ | 738 | | | $ | 2,286 | | | Weighted-average liability duration (years) | 11.3 | | 5.5 | | 10.3 |
______________ (1)Represents the portion of gross premiums collected from policyholders that is used to fund expected benefit payments. (2)Flooring adjustments are necessary when a cohort’s present value of future net premiums exceeds the present value of future benefits. The flooring adjustment ensures that the liability for future policy benefits for each cohort is not less than zero. This adjustment is most prevalent in our term life insurance products due to their product design of a level premium period followed by annual premium rate increases. | | | | | | | | | | | | | | | | | | | | | December 31, 2025 | | (Dollar amounts in millions) | Long-term
care insurance | | Life
insurance | | Fixed
annuities | | Present value of expected net premiums: | | | | | | | Beginning balance as of January 1 | $ | 17,315 | | | $ | 3,690 | | | $ | — | | | Beginning balance, at original discount rate | $ | 17,625 | | | $ | 3,640 | | | $ | — | | | Effect of changes in cash flow assumptions | (183) | | | — | | | — | | | Effect of actual variances from expected experience | (32) | | | (41) | | | — | | | Adjusted beginning balance | 17,410 | | | 3,599 | | | — | | | Issuances | 1 | | | — | | | 38 | | | Interest accretion | 874 | | | 197 | | | — | | Net premiums collected (1) | (1,874) | | | (401) | | | (38) | | | Derecognition (lapses and withdrawals) | — | | | — | | | — | | | Other | — | | | 1 | | | — | | | Ending balance, at original discount rate | 16,411 | | | 3,396 | | | — | | | Effect of changes in discount rate assumptions | 69 | | | 103 | | | — | | | Ending balance as of December 31 | $ | 16,480 | | | $ | 3,499 | | | $ | — | | | Present value of expected future policy benefits: | | | | | | | Beginning balance as of January 1 | $ | 58,487 | | | $ | 4,741 | | | $ | 10,695 | | | Beginning balance, at original discount rate | $ | 60,587 | | | $ | 4,645 | | | $ | 9,568 | | | Effect of changes in cash flow assumptions | 103 | | | — | | | (66) | | | Effect of actual variances from expected experience | 336 | | | (9) | | | 3 | | | Adjusted beginning balance | 61,026 | | | 4,636 | | | 9,505 | | | Issuances | 1 | | | — | | | 34 | | | Interest accretion | 3,280 | | | 239 | | | 617 | | | Benefit payments | (3,768) | | | (683) | | | (963) | | | Derecognition (lapses and withdrawals) | — | | | — | | | — | | | Other | — | | | (1) | | | — | | | Ending balance, at original discount rate | 60,539 | | | 4,191 | | | 9,193 | | | Effect of changes in discount rate assumptions | (905) | | | 163 | | | 1,244 | | | Ending balance as of December 31 | $ | 59,634 | | | $ | 4,354 | | | $ | 10,437 | | | Net liability for future policy benefits, before flooring adjustments | $ | 43,154 | | | $ | 855 | | | $ | 10,437 | | Flooring adjustments (2) | 3 | | | 612 | | | — | | | Net liability for future policy benefits | 43,157 | | | 1,467 | | | 10,437 | | | Less: reinsurance recoverable | 7,728 | | | 702 | | | 8,074 | | | Net liability for future policy benefits, net of reinsurance recoverable | $ | 35,429 | | | $ | 765 | | | $ | 2,363 | | | Weighted-average liability duration (years) | 11.5 | | 5.6 | | 10.4 |
______________ (1)Represents the portion of gross premiums collected from policyholders that is used to fund expected benefit payments. (2)Flooring adjustments are necessary when a cohort’s present value of future net premiums exceeds the present value of future benefits. The flooring adjustment ensures that the liability for future policy benefits for each cohort is not less than zero. This adjustment is most prevalent in our term life insurance products due to their product design of a level premium period followed by annual premium rate increases.
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| Schedule of Undiscounted and Discounted Expected Future Gross Premiums and Expected Future Benefit Payments |
The following table sets forth the amount of undiscounted and discounted expected future gross premiums and expected future benefit payments as of the dates indicated: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | March 31, 2026 | | December 31, 2025 | | (Amounts in millions) | Undiscounted | | Discounted | | Undiscounted | | Discounted | | Long-term care insurance | | | | | | | | | Expected future gross premiums | $ | 32,188 | | | $ | 22,248 | | | $ | 32,824 | | | $ | 22,941 | | | Expected future benefit payments | $ | 115,496 | | | $ | 58,397 | | | $ | 116,322 | | | $ | 59,634 | | | Life insurance | | | | | | | | | Expected future gross premiums | $ | 8,952 | | | $ | 5,052 | | | $ | 9,129 | | | $ | 5,236 | | | Expected future benefit payments | $ | 5,611 | | | $ | 4,200 | | | $ | 6,042 | | | $ | 4,354 | | | Fixed annuities | | | | | | | | | Expected future gross premiums | $ | — | | | $ | — | | | $ | — | | | $ | — | | | Expected future benefit payments | $ | 21,522 | | | $ | 10,127 | | | $ | 21,791 | | | $ | 10,437 | |
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