v3.26.1
DAC AND OTHER DEFERRED ASSETS/LIABILITIES
 3 Months Ended
Mar. 31, 2026
Contract Holder Bonus Interest Credits [Abstract]  
DAC AND OTHER DEFERRED ASSETS/LIABILITIES DAC AND OTHER DEFERRED ASSETS/LIABILITIES
The following table presents a reconciliation of DAC to the consolidated balance sheets:
March 31, 2026December 31, 2025
(in millions)
Retirement
GMxB Core
$
1,584 
$
1,587 
EQUI-VEST Individual
153 
153 
Investment Edge
285 
273 
SCS
2,343 
2,274 
EQUI-VEST Group
792 
789 
Momentum
78 
79 
Corporate and Other
Term
273 
288 
Universal Life
165 
167 
Variable Universal Life
1,153 
1,143 
Indexed Universal Life
179 
181 
GMxB Legacy
462 
472 
Closed Block
96 
98 
Other
21 
19 
Total
$
7,584 
$
7,523 
Annually, or as circumstances warrant, the Company reviews the associated decrements assumptions (i.e., mortality and lapse) based on our multi-year average of companies experience with actuarial judgments to reflect other observable industry trends. In addition to DAC, the unearned revenue liability and sales inducement asset (“SIA”) use similar techniques and quarterly update processes for balance amortization.
Changes in the DAC asset were as follows:
Three Months Ended March 31, 2026
Retirement
Corporate and OtherTotal
GMxB CoreEI IE SCSEG MomentumTermULVUL IUL GMxB LegacyCB (1)
(in millions)
Balance, beginning of period
$
1,587 
$
153 
$
273 
$
2,274 
$
789 
$
79 
$
288 
$
167 
$
1,143 
$
181 
$
472 
$
98 
$
7,504 
Capitalization
38 
3 
18 
183 
15 
3 
2 
2 
30 
1 
5 
— 
300 
Amortization
(41)
(3)
(6)
(95)
(12)
(4)
(8)
(3)
(17)
(3)
(15)
(2)
(209)
Recovery of acquisition costs (2)
— 
— 
— 
(19)
— 
— 
(9)
(1)
(3)
— 
— 
— 
(32)
Balance, end of period
$
1,584 
$
153 
$
285 
$
2,343 
$
792 
$
78 
$
273 
$
165 
$
1,153 
$
179 
$
462 
$
96 
$
7,563 
______________
(1)“CB” defined as Closed Block.
(2)Related to third party reinsurance transactions.

Three Months Ended March 31, 2025
Retirement
Corporate and OtherTotal
GMxB CoreEI IE SCSEG MomentumTermULVUL IUL GMxB Legacy
CB
(in millions)
Balance, beginning of period
$
1,605 
$
154 
$
225 
$
1,938 
$
768 
$
83 
$
314 
$
170 
$
1,083 
$
186 
$
517 
$
107 
$
7,150 
Capitalization
37 
3 
16 
157 
15 
3 
2 
5 
35 
3 
5 
— 
281 
Amortization (1)
(38)
(3)
(5)
(77)
(12)
(4)
(9)
(3)
(16)
(3)
(18)
(2)
(190)
Balance, end of period
$
1,604 
$
154 
$
236 
$
2,018 
$
771 
$
82 
$
307 
$
172 
$
1,102 
$
186 
$
504 
$
105 
$
7,241 
______________
(1)Includes an immaterial impact from Novation. See Note 1 for additional details.
Changes in the Retirement and Corporate and Other sales inducement assets were as follows:
Three Months Ended March 31,
20262025
Retirement
Corporate and OtherRetirementCorporate and Other
GMxB CoreGMxB LegacyGMxB CoreGMxB Legacy
(in millions)
Balance, beginning of period
$
107 
$
141 
$
117 
$
160 
Capitalization
— 
— 
— 
— 
Amortization
(3)
(4)
(3)
(5)
Balance, end of period
$
104 
$
137 
$
114 
$
155 
Changes in the Corporate and Other unearned revenue liability were as follows:
Three Months Ended March 31,
20262025
ULVULIULULVULIUL
(in millions)
Balance, beginning of period
$
112 
$
866 
$
254 
$
114 
$
840 
$
250 
Capitalization
3 
39 
10 
3 
37 
12 
Amortization
(2)
(15)
(5)
(2)
(13)
(4)
Recovery of unearned revenue reserves (1)
(2)
(21)
(7)
— 
— 
— 
Balance, end of period
$
111 
$
869 
$
252 
$
115 
$
864 
$
258 
______________
(1)    Related to third party reinsurance transactions.
LIABILITIES FOR FUTURE POLICYHOLDER BENEFITS
The following table reconciles the net liability for future policy benefits and liability of death benefits to the liability for future policy benefits in the consolidated balance sheets:
March 31, 2026December 31, 2025
(in millions)
Reconciliation
Term
$
1,209 
$
1,241 
Payout
5,243 
5,243 
Group Pension - Benefit Reserve & DPL
417 
432 
Health
1,274 
1,316 
UL
1,347 
1,328 
Subtotal
9,490 
9,560 
  Whole Life Closed Block and Open Block products
4,913 
4,980 
Other (1)
933 
936 
Future policyholder benefits total
15,336 
15,476 
  Other policyholder funds and dividends payable
2,105 
2,184 
Total
$
17,441 
$
17,660 
_____________
(1)Primarily consists of future policy benefits related to Protective Life and Annuity, Assumed Life and Disability, Group Life Run off, Variable Interest Sensitive Life rider and EB.
The following table summarizes balances and changes in the liability for future policy benefits for nonparticipating traditional and limited pay contracts:
Three Months Ended March 31, 2026Three Months Ended March 31, 2025
Retirement
Corporate & Other
Retirement
Corporate & Other
PayoutTermGroup PensionHealthPayoutTermGroup PensionHealth
(in millions)
Present Value of Expected Net Premiums
Balance, beginning of period$— $1,818 $— $(23)$— $1,932 $— $(25)
Beginning balance at original discount rate— 1,802 — (24)— 1,959 — (26)
Effect of changes in cash flow assumptions— — — — — — — — 
Effect of actual variances from expected experience— (26)— — — (29)— (2)
Adjusted beginning of period balance— 1,776 — (24)— 1,930 — (28)
Issuances— 8 — — — 11 — — 
Interest accrual— 22 — — — 24 — — 
Net premiums collected— (42)— 1 — (46)— 1 
Ending Balance at original discount rate— 1,764 — (23)— 1,919 — (27)
Effect of changes in discount rate assumptions— (16)— 1 — (7)— 1 
Balance, end of period$— $1,748 $— $(22)$— $1,912 $— $(26)
Present Value of Expected Future Policy Benefits
Balance, beginning of period
$
5,243 
$
3,058 
$
432 
$
1,293 
$5,050 $3,216 $460 $1,337 
Beginning balance of original discount rate
5,402 
2,991 
472 
1,458 
5,390 3,215 514 1,555 
Effect of changes in cash flow assumptions (1)
(15)
— 
— 
— 
(468)— — — 
Effect of actual variances from expected experience
— 
(38)
— 
(1)
(1)(39)— (6)
Adjusted beginning of period balance5,387 2,953 472 1,457 4,921 3,176 514 1,549 
Issuances
172 
8 
— 
— 
201 11 — — 
Interest accrual
52 
37 
4 
12 
51 40 5 13 
Benefits payments
(141)
(58)
(14)
(36)
(127)(58)(16)(38)
Ending Balance at original discount rate
5,470 
2,940 
462 
1,433 
5,046 3,169 503 1,524 
Effect of changes in discount rate assumptions
(227)
16 
(45)
(181)
(264)34 (49)(197)
Balance, end of period
$
5,243 
$
2,956 
$
417 
$
1,252 
$4,782 $3,203 $454 $1,327 
Impact of flooring LFPB at zero
— 
1 
— 
— 
— 1 — — 
Net liability for future policy benefits
5,243 
1,209 
417 
1,274 
4,782 
1,292 
454 
1,353 
Less: Reinsurance recoverable
(1,206)
(916)
— 
(991)
(960)6 — (1,060)
Net liability for future policy benefits, after reinsurance recoverable
$
4,037 
$
293 
$
417 
$
283 
$3,822 $1,298 $454 $293 
Weighted-average duration of liability for future policyholder benefits (years)7.46.86.88.17.76.86.98.3
______________
(1)Includes the net income impact due to novation as described in Note 1.
The following table provides the amount of undiscounted and discounted expected gross premiums and expected future benefits and expenses related to nonparticipating traditional and limited payment contracts:
March 31, 2026December 31, 2025
(in millions)
Term
Expected future benefit payments and expenses (undiscounted)
$
5,123 
$
5,214 
Expected future gross premiums (undiscounted)
6,153 
6,250 
Expected future benefit payments and expenses (discounted; AOCI basis)
2,956 
3,058 
Expected future gross premiums (discounted; AOCI basis)
3,316 
3,424 
Payout
Expected future benefit payments and expenses (undiscounted)
7,785 
7,683 
Expected future gross premiums (undiscounted)
— 
— 
Expected future benefit payments and expenses (discounted; AOCI basis)
5,123 
5,127 
Expected future gross premiums (discounted; AOCI basis)
— 
— 
Group Pension
Expected future benefit payments and expenses (undiscounted)
565 
578 
Expected future gross premiums (undiscounted)
— 
— 
Expected future benefit payments and expenses (discounted; AOCI basis)
397 
412 
Expected future gross premiums (discounted; AOCI basis)
— 
— 
Health
Expected future benefit payments and expenses (undiscounted)
1,950 
1,987 
Expected future gross premiums (undiscounted)
58 
60 
Expected future benefit payments and expenses (discounted; AOCI basis)
1,245 
1,280 
Expected future gross premiums (discounted; AOCI basis)
$
46 
$
48 
The table below summarizes the revenue and interest related to nonparticipating traditional and limited payment contracts:
Three Months Ended March 31,
2026202520262025
Gross PremiumInterest Accretion
(in millions)
Revenue and Interest Accretion
Term
$
76 
$
83 
$
15 
$
16 
Payout
43 
67 
54 
53 
Group Pension
— 
— 
4 
5 
Health
2 
2 
13 
13 
Total
$
121 
$
152 
$
86 
$
87 
The following table provides the weighted average interest rates for the liability for future policy benefits:
March 31, 2026December 31, 2025
Weighted Average Interest Rate
Term
Interest accretion rate
5.6 
%
5.6 
%
Current discount rate
5.1 
%
4.9 
%
Payout
Interest accretion rate
4.6 
%
4.5 
%
Current discount rate
5.2 
%
5.0 
%
Group Pension
Interest accretion rate
3.4 
%
3.4 
%
Current discount rate
5.1 
%
4.8 
%
Health
Interest accretion rate
3.4 
%
3.4 
%
Current discount rate
5.3 
%
5.0 
%
The following table provides the balance, changes in and the weighted average durations of the additional insurance liabilities:
Three Months Ended March 31,
20262025
Corporate and Other
UL
(in millions)
Balance, beginning of period
$
1,328 
$
1,246 
Beginning balance before AOCI adjustments
1,347 
1,302 
Effect of changes in interest rate & cash flow assumptions and model changes
— 
— 
Effect of actual variances from expected experience
— 
5 
Adjusted beginning of period balance
1,347 
1,307 
Interest accrual
15 
14 
Net assessments collected
16 
17 
Benefit payments
(15)
(22)
Ending balance before shadow reserve adjustments
1,363 
1,316 
Effect of reserve adjustment recorded in AOCI
(16)
(52)
Balance, end of period
$
1,347 
$
1,264 
Net liability for additional liability
$
1,347 
$
1,264 
Less: Reinsurance recoverable
(1,113)
— 
Net liability for additional liability, after reinsurance recoverable
$
234 
$
1,264 
Weighted-average duration of additional liability - death benefit (years)18.419.3
The following tables provide the revenue, interest and weighted average interest rates, related to the additional insurance liabilities:
Three Months Ended March 31,
2026202520262025
AssessmentsInterest Accretion
(in millions)
Revenue and Interest Accretion
UL
$
139 
$
145 
$
15 
$
14 
Total
$
139 
$
145 
$
15 
$
14 
March 31, 2026December 31, 2025
Weighted Average Interest Rate
UL
4.5 
%
4.5 
%
Interest accretion rate
4.5 
%
4.5 
%
The discount rate used for additional insurance liabilities reserve is based on the crediting rate at issue.