Policyholder Contract Deposits and Other Policyholder Funds

13. Policyholder Contract Deposits and Other Policyholder Funds

POLICYHOLDER CONTRACT DEPOSITS

The liability for Policyholder contract deposits is primarily recorded at accumulated value (deposits received and net transfers from separate accounts, plus accrued interest credited, less withdrawals and assessed fees). Deposits collected on investment-oriented products are not reflected as revenues. They are recorded directly to Policyholder contract deposits upon receipt. Amounts assessed against the contract holders for mortality, administrative, and other services are included as Policy fees in revenues.

In addition to liabilities for universal life, fixed annuities, fixed options within variable annuities, annuities without life contingencies, funding agreements and GICs, policyholder contract deposits also include our liability for (i) index-linked interest credited features accounted for as embedded derivatives at fair value, (ii) annuities issued in a structured settlement arrangement with no life contingency and (iii) certain contracts we have elected to account for at fair value. Changes in the fair value of the embedded derivatives related to policy index-linked interest credited features and the fair value of derivatives hedging these liabilities are recognized in realized gains and losses.

For additional information on index credits accounted for as embedded derivatives, see Note 4.

The following table presents the balances and changes in Policyholder contract deposits account balances(a):


	Individual Retirement			Group Retirement			Life Insurance			Institutional Markets			Corporate and other			Total
(in millions, except for average crediting rate)
Three Months Ended March 31, 2026
Policyholder contract deposits account balance, beginning of year	$	111,802		$	38,407		$	10,440		$	22,746		$	7,729		$	191,124

Deposits	4,353			1,107			395			1,058			509			7,422
Policy charges	(59)			(125)			(370)			(17)			(161)			(732)
Surrenders and withdrawals	(3,184)			(2,158)			(63)			(55)			(1,615)			(7,075)
Benefit payments	(671)			(505)			(62)			(303)			(360)			(1,901)
Net transfers from (to) separate account	—			1,202			5			59			1,401			2,667
Interest credited	1,141			286			129			271			49			1,876
Other, including foreign exchange	(8)			—			11			(12)			3			(6)
Policyholder contract deposits account balance, end of period	113,374			38,214			10,485			23,747			7,555			193,375
Other reconciling items(b)	(3,078)			(341)			42			78			—			(3,299)
Policyholder contract deposits	$	110,296		$	37,873		$	10,527		$	23,825		$	7,555		$	190,076
Weighted average crediting rate	3.71		%	3.23		%	4.34		%	4.77		%	2.60		%
Cash surrender value(c)	$	106,048		$	37,314		$	9,374		$	2,633		$	6,033		$	161,402


Three Months Ended March 31, 2025
Policyholder contract deposits account balance, beginning of year	$	100,230		$	39,246		$	10,338		$	18,026		$	8,375		$	176,215
Reclassification due to reinsurance recapture	—			—			—			14			(14)			—
Deposits	4,305			1,143			406			1,445			427			7,726
Policy charges	(49)			(124)			(375)			(18)			(167)			(733)
Surrenders and withdrawals	(2,339)			(2,109)			(65)			(78)			(1,483)			(6,074)
Benefit payments	(687)			(503)			(65)			(362)			(347)			(1,964)
Net transfers from (to) separate account	—			1,023			11			64			1,334			2,432
Interest credited	993			304			118			217			56			1,688
Other, including foreign exchange	(6)			—			17			(7)			6			10
Policyholder contract deposits account balance, end of period	102,447			38,980			10,385			19,301			8,187			179,300
Other reconciling items(b)	(2,831)			(334)			103			74			—			(2,988)
Policyholder contract deposits	$	99,616		$	38,646		$	10,488		$	19,375		$	8,187		$	176,312
Weighted average crediting rate	3.43		%	3.15		%	4.33		%	4.75		%	2.71		%
Cash surrender value(c)	$	95,527		$	38,060		$	9,191		$	2,598		$	6,502		$	151,878

(a)Transactions between the general account and the separate account are presented in this table on a gross basis (e.g., a policyholder's funds are initially deposited into the general account and then simultaneously transferred to the separate account), and thus, did not impact the ending balance of policyholder contract deposits.

(b)Reconciling items principally relate to MRBs that are bifurcated and reported separately, and changes in the fair value of embedded derivatives of $(649) million and $(222) million that are recorded in policyholder contract deposits as of March 31, 2026 and 2025, respectively.

(c)Cash surrender value is related to the portion of policyholder contract deposits that have a defined cash surrender value (e.g. GICs do not have a cash surrender value).

For information related to net amount at risk, refer to the table that presents the balances of and changes in MRBs in Note 14.

The following table presents Policyholder contract deposits account balance by range of guaranteed minimum crediting rates and the related range of difference, in basis points, between rates being credited to policyholders and the respective guaranteed minimums:


March 31, 2026		At Guaranteed Minimum		1 Basis Point - 50 Basis Points Above		More than 50 Basis Points Above Minimum Guarantee		Total
(in millions, except percentage of total)
Individual Retirement	Range of Guaranteed Minimum Credited Rate
	<=1%	$	2,601	$	1,256	$	37,708	$	41,565
	> 1% - 2%	1,869		47		726		2,642
	> 2% - 3%	5,638		145		4,221		10,004
	> 3% - 4%	4,886		31		4		4,921
	> 4% - 5%	376		—		4		380
	> 5%	30		—		1		31
	Total	$	15,400	$	1,479	$	42,664	$	59,543
Group Retirement	Range of Guaranteed Minimum Credited Rate
	<=1%	$	1,891	$	1,533	$	9,407	$	12,831
	> 1% - 2%	2,952		432		851		4,235
	> 2% - 3%	9,656		243		164		10,063
	> 3% - 4%	503		—		—		503
	> 4% - 5%	5,896		—		—		5,896
	> 5%	120		—		—		120
	Total	$	21,018	$	2,208	$	10,422	$	33,648
Life Insurance	Range of Guaranteed Minimum Credited Rate
	<=1%	$	—	$	—	$	—	$	—
	> 1% - 2%	—		113		359		472
	> 2% - 3%	10		163		1,682		1,855
	> 3% - 4%	1,071		451		27		1,549
	> 4% - 5%	2,567		—		—		2,567
	> 5%	198		—		—		198
	Total	$	3,846	$	727	$	2,068	$	6,641
Corporate and Other	Range of Guaranteed Minimum Credited Rate
	<=1%	$	2,558	$	—	$	1	$	2,559
	> 1% - 2%	666		1		35		702
	> 2% - 3%	1,354		6		60		1,420
	> 3% - 4%	440		1		511		952
	> 4% - 5%	185		—		3		188
	> 5%	9		—		—		9
	Total	$	5,212	$	8	$	610	$	5,830
Total*		$	45,476	$	4,422	$	55,764	$	105,662
Percentage of total		43%		4%		53%		100%


March 31, 2025		At Guaranteed Minimum		1 Basis Point - 50 Basis Points Above		More than 50 Basis Points Above Minimum Guarantee		Total
(in millions, except percentage of total)
Individual Retirement	Range of Guaranteed Minimum Credited Rate
	<=1%	$	2,923	$	1,161	$	34,400	$	38,484
	> 1% - 2%	2,226		41		1,047		3,314
	> 2% - 3%	6,145		138		2,910		9,193
	> 3% - 4%	5,479		34		4		5,517
	> 4% - 5%	403		—		4		407
	> 5%	31		—		3		34
	Total	$	17,207	$	1,374	$	38,368	$	56,949









Group Retirement	Range of Guaranteed Minimum Credited Rate
	<=1%	$	2,000	$	1,516	$	8,881	$	12,397
	> 1% - 2%	3,239		534		828		4,601
	> 2% - 3%	10,426		351		128		10,905
	> 3% - 4%	541		—		—		541
	> 4% - 5%	6,239		—		—		6,239
	> 5%	130		—		—		130
	Total	$	22,575	$	2,401	$	9,837	$	34,813

Life Insurance	Range of Guaranteed Minimum Credited Rate
	<=1%	$	—	$	—	$	—	$	—
	> 1% - 2%	—		111		364		475
	> 2% - 3%	12		177		1,723		1,912
	> 3% - 4%	1,171		420		24		1,615
	> 4% - 5%	2,696		—		—		2,696
	> 5%	207		—		—		207
	Total	$	4,086	$	708	$	2,111	$	6,905
Corporate and Other	Range of Guaranteed Minimum Credited Rate
	<=1%	$	2,943	$	1	$	2	$	2,946
	> 1% - 2%	763		2		40		805
	> 2% - 3%	1,293		2		68		1,363
	> 3% - 4%	475		1		543		1,019
	> 4% - 5%	192		—		3		195
	> 5%	9		—		—		9
	Total	$	5,675	$	6	$	656	$	6,337
Total*		$	49,543	$	4,489	$	50,972	$	105,004
Percentage of total		47%		4%		49%		100%

*Excludes policyholder contract deposits account balances that are not subject to guaranteed minimum crediting rates.

OTHER POLICYHOLDER FUNDS

Other policyholder funds include unearned revenue reserve (“URR”), consisting of front-end loads on investment-oriented contracts, representing those policy loads that are non-level and typically higher in initial policy years than in later policy years. Amortization of URR is recorded in Policy fees.

URR for investment-oriented contracts are generally deferred and amortized into income using the same assumptions and factors used to amortize DAC (i.e., on a constant level basis).

The following table presents a rollforward of the unearned revenue reserve for the three months ended March 31, 2026 and 2025:


	Life Insurance		Institutional Markets		Corporate and Other		Total
(in millions)


Three Months Ended March 31, 2026
Balance, beginning of year	$	1,876	$	17	$	76	$	1,969
Revenue deferred	42		—		—		42


Amortization	(28)		—		(2)		(30)

Balance, end of period	$	1,890	$	17	$	74	$	1,981
Other reconciling items*							992
Other policyholder funds							$	2,973

Three Months Ended March 31, 2025
Balance, beginning of year	$	1,821	$	1	$	84	$	1,906
Revenue deferred	41		1		—		42


Amortization	(28)		—		(2)		(30)

Balance, end of period	$	1,834	$	2	$	82	$	1,918
Other reconciling items*							971
Other policyholder funds							$	2,889

*Other reconciling items include policyholders' dividend accumulations, provisions for future dividends to participating policyholders, dividends to policyholders and any similar items.