v3.26.1
Future Policy Benefits
 3 Months Ended
Mar. 31, 2026
Insurance [Abstract]  
Future Policy Benefits
12. Future Policy Benefits
Future policy benefits primarily include reserves for traditional life and annuity payout contracts, which represent an estimate of the present value of future benefits less the present value of future net premiums. Included in Future policy benefits are liabilities for annuities issued in structured settlement arrangements whereby a claimant receives life contingent payments over their lifetime. Also included are pension risk transfer arrangements whereby an upfront premium is received in exchange for guaranteed retirement benefits. All payments under these arrangements are fixed and determinable with respect to their amounts and dates. Structured settlement or other annuitization elections (e.g., certain single premium immediate annuities) that do not involve life contingent payments, but rather payments for a stated period are included in Policyholder contract deposits.
For traditional and limited pay long-duration products, benefit reserves are accrued and benefit expense is recognized using a net premium ratio (“NPR”) methodology for each annual cohort of business.
The following tables present the balances and changes in the liability for future policy benefits and a reconciliation of the net liability for future policy benefits to the liability for future policy benefits in the Condensed Consolidated Balance Sheets:
Individual
Retirement		Group
Retirement		Life
Insurance		Institutional
Markets		Corporate and OtherTotal
(in millions, except for liability durations)
Three Months Ended March 31, 2026
Present value of expected net premiums
Balance, beginning of year$— $— $8,365 $— $825 $9,190 
Effect of changes in discount rate assumptions (AOCI)— — 504 — 34 538 
Beginning balance at original discount rate— — 8,869 — 859 9,728 
Effect of actual variances from expected experience— — 4 — (4)— 
Adjusted beginning of year balance— — 8,873 — 855 9,728 
Issuances— — 171 — 6 177 
Interest accrual— — 86 — 9 95 
Net premium collected— — (265)— (31)(296)
Other— — — — — — 
Ending balance at original discount rate— — 8,865 — 839 9,704 
Effect of changes in discount rate assumptions (AOCI)— — (602)— (44)(646)
Balance, end of period$— $— $8,263 $— $795 $9,058 
Present value of expected future policy benefits
Balance, beginning of year$1,173 $291 $17,209 $24,147 $18,772 $61,592 
Effect of changes in discount rate assumptions (AOCI)110 (5)1,261 3,290 1,180 5,836 
Beginning balance at original discount rate1,283 286 18,470 27,437 19,952 67,428 
Effect of actual variances from expected experience(a)
(9)— 5 9 (6)(1)
Adjusted beginning of year balance1,274 286 18,475 27,446 19,946 67,427 
Issuances14 2 170 20 9 215 
Interest accrual13 4 197 296 235 745 
Benefit payments(30)(11)(404)(422)(365)(1,232)
Foreign exchange impact— — — (246)— (246)
Other— — — — — — 
Ending balance at original discount rate1,271 281 18,438 27,094 19,825 66,909 
Effect of changes in discount rate assumptions (AOCI)(121)2 (1,510)(3,973)(1,485)(7,087)
Balance, end of period$1,150 $283 $16,928 $23,121 $18,340 $59,822 
Net liability for future policy benefits, end of period1,150 283 8,665 23,121 17,545 50,764 
Liability for future policy benefits for certain participating contracts— — 11 — 1,211 1,222 
Liability for universal life policies(b)
— — 4,190 — 54 4,244 
Deferred profit liability31 20 26 1,641 756 2,474 
Other reconciling items(c)
14 — 380 — 106 500 
Future policy benefits for life and accident and health insurance contracts1,195 303 13,272 24,762 19,672 59,204 
Less: Reinsurance recoverable:(5)— (656)(52)(19,672)(20,385)
Net liability for future policy benefits after reinsurance recoverable$1,190 $303 $12,616 $24,710 $— $38,819 
Weighted average liability duration of the liability for future policy benefits (years)(d)
7.25.910.110.710.1
Individual
Retirement		Group
Retirement		Life
Insurance		Institutional
Markets		Corporate and OtherTotal
(in millions, except for liability durations)
Three Months Ended March 31, 2025
Present value of expected net premiums
Balance, beginning of year$— $— $8,287 $— $871 $9,158 
Effect of changes in discount rate assumptions (AOCI)— — 797 — 61 858 
Reclassified due to reinsurance recapture
— — — — — — 
Beginning balance at original discount rate— — 9,084 — 932 10,016 
Effect of actual variances from expected experience— — (1)— — (1)
Adjusted beginning of year balance— — 9,083 — 932 10,015 
Issuances— — 154 — — 154 
Interest accrual— — 89 — 10 99 
Net premium collected— — (260)— (27)(287)
Other— — — — — — 
Ending balance at original discount rate— — 9,066 — 915 9,981 
Effect of changes in discount rate assumptions (AOCI)— — (686)— (50)(736)
Balance, end of period$— $— $8,380 $— $865 $9,245 
Present value of expected future policy benefits
Balance, beginning of year$1,130 $202 $16,947 $19,487 $19,243 $57,009 
Effect of changes in discount rate assumptions (AOCI)145 3 1,720 3,206 1,556 6,630 
Reclassified due to reinsurance recapture
— 102 — 259 (361)— 
Beginning balance at original discount rate1,275 307 18,667 22,952 20,438 63,639 
Effect of actual variances from expected experience(a)
(8)2 2 5 (15)(14)
Adjusted beginning of year balance1,267 309 18,669 22,957 20,423 63,625 
Issuances19 3 153 490 8 673 
Interest accrual12 4 200 238 241 695 
Benefit payments(29)(11)(395)(340)(375)(1,150)
Foreign exchange impact— — — 288 — 288 
Other(1)(2)— — (1)(4)
Ending balance at original discount rate1,268 303 18,627 23,633 20,296 64,127 
Effect of changes in discount rate assumptions (AOCI)(127)1 (1,482)(3,404)(1,253)(6,265)
Balance, end of period$1,141 $304 $17,145 $20,229 $19,043 $57,862 
Net liability for future policy benefits, end of year1,141 304 8,765 20,229 18,178 48,617 
Liability for future policy benefits for certain participating contracts— — 12 — 1,250 1,262 
Liability for universal life policies(b)
— — 4,095 — 54 4,149 
Deferred profit liability36 23 23 1,615 811 2,508 
Other reconciling items(c)
15 — 429 — 106 550 
Future policy benefits for life and accident and health insurance contracts1,192 327 13,324 21,844 20,399 57,086 
Less: Reinsurance recoverable:(4)— (665)(40)(20,161)(20,870)
Net liability for future policy benefits after reinsurance recoverable$1,188 $327 $12,659 $21,804 $238 $36,216 
Weighted average liability duration of the liability for future policy benefits (years)(d)
7.46.010.711.010.6
Effect of changes in cash flow assumptions and variances from actual experience are partially offset by changes in the deferred profit liability.
(b)Additional details can be found in the table that presents the balances and changes in the liability for universal life policies.
(c)Other reconciling items primarily include the Accident and Health as well as Group Benefits (short-duration) contracts.
(d)The weighted average liability durations are calculated as the modified duration using projected future net liability cashflows that are aggregated at the segment level, utilizing the segment level weighted average interest rates and current discount rate, which can be found in the table below.
For the three months ended March 31, 2026 and 2025 in the traditional and term life insurance block, capping of net premium ratios at 100% caused a (credit)/charge to net income of $0 million and $0 million, respectively. The discount rate was updated based on market observable information.
The following table presents the amount of undiscounted expected future benefit payments and undiscounted and discounted expected gross premiums for future policy benefits for nonparticipating contracts:
Three Months Ended March 31,
(in millions)20262025
Individual RetirementUndiscounted expected future benefits and expense$1,853 $1,831 
Undiscounted expected future gross premiums$— $— 
Group RetirementUndiscounted expected future benefits and expense$404 $438 
Undiscounted expected future gross premiums$— $— 
Life Insurance
Undiscounted expected future benefits and expense$28,973 $30,663 
Undiscounted expected future gross premiums$18,782 $21,252 
Discounted expected future gross premiums (at current discount rate)$12,682 $14,159 
Institutional MarketsUndiscounted expected future benefits and expense$53,779 $44,348 
Undiscounted expected future gross premiums$— $— 
Corporate and other
Undiscounted expected future benefits and expense$39,509 $40,826 
Undiscounted expected future gross premiums$1,765 $1,932 
Discounted expected future gross premiums (at current discount rate)$1,198 $1,297 
The following table presents the amount of revenue and interest recognized in the Condensed Consolidated Statements of Income (Loss) for future policy benefits for nonparticipating contracts:
Gross PremiumsInterest Accretion
Three Months Ended March 31,Three Months Ended March 31,
(in millions)2026202520262025
Individual Retirement$15 $17 $13 $12 
Group Retirement1 4 4 4 
Life Insurance449 455 111 111 
Institutional Markets
23 509 296 238 
Corporate and Other55 55 226 231 
Total$543 $1,040 $650 $596 
The following table presents the weighted-average interest rate for future policy benefits for nonparticipating contracts:
Individual
Retirement		Group
Retirement		Life
Insurance		Institutional
Markets		Corporate and Other
March 31, 2026
Weighted-average interest rate, original discount rate 3.98 %5.20 %4.70 %4.59 %4.87 %
Weighted-average interest rate, current discount rate 5.42 %5.24 %5.65 %5.98 %5.65 %
March 31, 2025
Weighted-average interest rate, original discount rate
3.85 %5.29 %4.70 %4.31 %4.87 %
Weighted-average interest rate, current discount rate
5.31 %5.22 %5.51 %5.68 %5.48 %
The weighted average interest rates are calculated using projected future net liability cash flows that are aggregated to the segment level, and are represented as an annual rate.
Additional Liabilities: For universal-life type products, insurance benefits in excess of the account balance are generally recognized as expenses in the period incurred unless the design of the product is such that future charges are insufficient to cover the benefits, in which case an “additional liability” is accrued over the life of the contract. These additional liabilities are included in Future policy benefits for life and accident and health insurance contracts in the Condensed Consolidated Balance Sheets.
The following table presents the balances and changes in the liability for universal life policies:
Three Months Ended March 31,
20262025
Life
Insurance		Corporate and OtherTotalLife
Insurance		Corporate and OtherTotal
(in millions, except duration of liability)
Balance, beginning of year$4,241 $54 $4,295 $4,034 $54 $4,088 
Effect of changes in experience91 (1)90 152 (1)151 
Adjusted beginning balance$4,332 $53 $4,385 $4,186 $53 $4,239 
Assessments163 — 163 163 — 163 
Excess benefits paid(297)— (297)(328)— (328)
Interest accrual41 1 42 39 1 40 
Other1 — 1 2 — 2 
Changes related to unrealized appreciation (depreciation) of investments(50)— (50)33 — 33 
Balance, end of period$4,190 $54 $4,244 $4,095 $54 $4,149 
Less: Reinsurance recoverable(162)(54)(216)(152)(54)(206)
Balance, end of period, net of Reinsurance recoverable$4,028 $— $4,028 $3,943 $— $3,943 
Weighted average duration of liability *
26.78.624.58.8
*The weighted average duration of liabilities is calculated as the modified duration using projected future net liability cashflows that are aggregated at the segment level, utilizing the segment level weighted average interest rates, which can be found in the table below.
The following table presents the amount of revenue and interest recognized in the Condensed Consolidated Statements of Income (Loss) for the liability for universal life policies:
Gross AssessmentsInterest Accretion
Three Months Ended March 31,Three Months Ended March 31,
(in millions)2026202520262025
Life Insurance$259 $276 $41 $39 
Corporate and Other10 9 1 1 
Total$269 $285 $42 $40 
The following table presents the calculation of weighted average interest rate for the liability for universal life policies:
March 31,20262025
Life
Insurance		Corporate and OtherLife
Insurance		Corporate and Other
Weighted-average interest rate3.93 %4.20 %4.08 %4.20 %
The weighted average interest rates are calculated using projected future net liability cash flows that are aggregated to the segment level, and are represented as an annual rate.
The following table presents details concerning our universal life policies:
Three Months Ended March 31,
(in millions, except for attained age of contract holders)20262025
Account value$4,323$4,054
Net amount at risk$78,630$76,533
Average attained age of contract holders5453