Future Policy Benefits

3 Months Ended

Mar. 31, 2026

Liability for Future Policy Benefits and Unpaid Claims Disclosure

4. Future Policy Benefits

The Company establishes liabilities for amounts payable under insurance policies. These liabilities are comprised of traditional and limited-payment contracts and associated deferred profit liability (“DPL”), additional insurance liabilities, participating life and short-duration contracts.

The Company’s future policy benefits (“FPBs”) on the interim condensed consolidated balance sheets were as follows at:


	March 31, 2026		December 31, 2025
	(In millions)
Traditional and Limited-Payment Contracts:
RIS - Annuities	$	78,651	$	79,523
Asia:
Whole and term life & endowments	9,236		10,140
Accident & health	7,259		7,913
Latin America - Fixed annuities	12,453		12,336
Corporate & Other - Long-term care	14,978		15,224
Deferred Profit Liabilities:
RIS - Annuities	3,877		3,855
Asia:
Whole and term life & endowments	915		919
Accident & health	984		993
Latin America - Fixed annuities	540		562
Additional Insurance Liabilities:
Asia:
Variable life	1,052		1,074
Universal and variable universal life	327		330
Corporate & Other - Universal and variable universal life	2,740		2,713
Corporate & Other - Participating life	47,063		47,359
Other long-duration (1)	11,209		11,148
Short-duration and other	15,344		14,766
Total	$	206,628	$	208,855

_______________

(1)This balance represents liabilities for various smaller product lines across multiple segments, as well as Corporate & Other.

Rollforwards - Traditional and Limited-Payment Contracts

The following information about the direct and assumed liability for FPBs includes disaggregated rollforwards of expected future net premiums and expected future benefits. The products grouped within these rollforwards were selected based upon common characteristics and valuations using similar inputs, judgments, assumptions and methodologies within a

particular segment of the business. The adjusted balance in each disaggregated rollforward reflects the remeasurement (gains) losses. All amounts presented in the rollforwards and accompanying financial information do not include a reduction for amounts ceded to reinsurers, except with respect to ending net liability for FPB balances where applicable.

RIS - Annuities

The RIS segment’s annuity products include pension risk transfers (including assumed pension risk transfers from the United Kingdom (“U.K.”)), certain structured settlements and certain institutional income annuities, which are mainly single premium spread-based products. The Company reinsures portions of certain pension risk transfers and structured settlements on a modified coinsurance basis. Information regarding these products was as follows:


	Three Months Ended March 31,
	2026			2025
	(Dollars in millions)
Present Value of Expected Net Premiums
Balance, beginning of period, at current discount rate at balance sheet date	$	—		$	—

Balance, beginning of period, at original discount rate	$	—		$	—

Effect of actual variances from expected experience (1)	(13)			(32)
Adjusted balance	(13)			(32)
Issuances	1,296			2,150
Net premiums collected	(1,283)			(2,118)
Ending balance at original discount rate	—			—
Balance, end of period, at current discount rate at balance sheet date	$	—		$	—

Present Value of Expected FPBs
Balance, beginning of period, at current discount rate at balance sheet date	$	79,842		$	66,621

Balance, beginning of period, at original discount rate	$	81,498		$	69,643

Effect of actual variances from expected experience (1)	(46)			(80)
Adjusted balance	81,452			69,563
Issuances	1,297			2,179
Interest accrual	966			833
Benefit payments	(1,828)			(1,620)
Effect of foreign currency translation	(21)			9
Ending balance at original discount rate	81,866			70,964
Effect of changes in discount rate assumptions	(2,889)			(2,533)
Balance, end of period, at current discount rate at balance sheet date	78,977			68,431

Cumulative amount of fair value hedging adjustments	(326)			(285)
Net liability for FPBs	78,651			68,146
Less: Reinsurance recoverables	12,227			2,228
Net liability for FPBs, net of reinsurance	$	66,424		$	65,918

Undiscounted - Expected future benefit payments	$	146,398		$	128,949
Discounted - Expected future benefit payments (at current discount rate at balance sheet date)	$	78,977		$	68,431
Weighted-average duration of the liability	8 years			8 years
Weighted-average interest accretion (original locked-in) rate	4.8		%	4.9		%
Weighted-average current discount rate at balance sheet date	5.6		%	5.5		%

_________________

(1)For the three months ended March 31, 2025, the net effect of actual variances from expected experience was largely offset by the corresponding impact in DPL associated with the RIS segment’s annuity products of $34 million.

Asia

Whole and Term Life & Endowments

The Asia segment’s whole and term life & endowment products in Japan and Korea offer various life insurance coverages to customers. Information regarding these products was as follows:


	Three Months Ended March 31,
		2026			2025
		(Dollars in millions)
Present Value of Expected Net Premiums
Balance, beginning of period, at current discount rate at balance sheet date		$	3,910		$	4,023

Balance, beginning of period, at original discount rate		$	4,337		$	4,286

Effect of actual variances from expected experience		(11)			(14)
Adjusted balance		4,326			4,272
Issuances		207			149
Interest accrual		23			19
Net premiums collected		(167)			(155)
Effect of foreign currency translation		(87)			155
Ending balance at original discount rate		4,302			4,440
Effect of changes in discount rate assumptions		(490)			(318)
Effect of foreign currency translation on the effect of changes in discount rate assumptions		7			(14)
Balance, end of period, at current discount rate at balance sheet date		$	3,819		$	4,108

Present Value of Expected FPBs
Balance, beginning of period, at current discount rate at balance sheet date		$	14,050		$	15,190

Balance, beginning of period, at original discount rate		$	15,358		$	15,252

Effect of actual variances from expected experience		1			(12)
Adjusted balance		15,359			15,240
Issuances		207			149
Interest accrual		98			91
Benefit payments		(256)			(244)
Effect of foreign currency translation		(388)			544
Ending balance at original discount rate		15,020			15,780
Effect of changes in discount rate assumptions		(1,938)			(22)
Effect of foreign currency translation on the effect of changes in discount rate assumptions		(27)			(85)
Balance, end of period, at current discount rate at balance sheet date		13,055			15,673


Net liability for FPBs		9,236			11,565
Less: Amount due to reinsurer		(1)			(2)
Net liability for FPBs, net of reinsurance		$	9,237		$	11,567

Undiscounted:
Expected future gross premiums		$	9,147		$	9,043
Expected future benefit payments		$	25,998		$	26,263
Discounted (at current discount rate at balance sheet date):
Expected future gross premiums		$	7,256		$	7,512
Expected future benefit payments		$	13,055		$	15,673
Weighted-average duration of the liability		16 years			18 years
Weighted -average interest accretion (original locked-in) rate		2.8		%	2.6		%
Weighted-average current discount rate at balance sheet date		4.0		%	2.8		%

Accident & Health

The Asia segment’s accident & health products in Japan and Korea offer various hospitalization, cancer, critical illness, disability, income protection and personal accident coverage. Information regarding these products was as follows:


	Three Months Ended March 31,
	2026			2025
	(Dollars in millions)
Present Value of Expected Net Premiums
Balance, beginning of period, at current discount rate at balance sheet date	$	15,389		$	17,203

Balance, beginning of period, at original discount rate	$	18,243		$	18,820

Effect of actual variances from expected experience	(36)			(125)
Adjusted balance	18,207			18,695
Issuances	245			338
Interest accrual	53			55
Net premiums collected	(449)			(470)
Effect of foreign currency translation and other - net	(320)			1,072
Ending balance at original discount rate	17,736			19,690
Effect of changes in discount rate assumptions	(3,196)			(2,017)
Effect of foreign currency translation on the effect of changes in discount rate assumptions	46			(84)
Balance, end of period, at current discount rate at balance sheet date	$	14,586		$	17,589

Present Value of Expected FPBs
Balance, beginning of period, at current discount rate at balance sheet date	$	23,153		$	26,565

Balance, beginning of period, at original discount rate	$	32,942		$	32,838

Effect of actual variances from expected experience	(39)			(132)
Adjusted balance	32,903			32,706
Issuances	245			337
Interest accrual	115			116
Benefit payments	(310)			(310)
Effect of foreign currency translation and other - net	(640)			1,661
Ending balance at original discount rate	32,313			34,510
Effect of changes in discount rate assumptions	(10,805)			(6,967)
Effect of foreign currency translation on the effect of changes in discount rate assumptions	155			(325)
Balance, end of period, at current discount rate at balance sheet date	21,663			27,218

Cumulative impact of flooring the future policyholder benefits reserve	182			50
Net liability for FPBs	7,259			9,679
Less: Reinsurance recoverables	102			141
Net liability for FPBs, net of reinsurance	$	7,157		$	9,538

Undiscounted:
Expected future gross premiums	$	35,766		$	38,785
Expected future benefit payments	$	42,669		$	45,242
Discounted (at current discount rate at balance sheet date):
Expected future gross premiums	$	25,297		$	30,160
Expected future benefit payments	$	21,663		$	27,218
Weighted-average duration of the liability	16 years			23 years
Weighted-average interest accretion (original locked-in) rate	1.7		%	1.7		%
Weighted-average current discount rate at balance sheet date	4.2		%	2.9		%

Latin America - Fixed Annuities

The Latin America segment’s fixed annuity products in Chile and Mexico include fixed income annuities that provide for asset distribution needs. Information regarding these products was as follows:


	Three Months Ended March 31,
	2026			2025
	(Dollars in millions)
Present Value of Expected Net Premiums
Balance, beginning of period, at current discount rate at balance sheet date	$	—		$	—

Balance, beginning of period, at original discount rate	$	—		$	—

Effect of actual variances from expected experience	—			—
Adjusted balance	—			—
Issuances	448			330
Interest accrual	2			1
Net premiums collected	(450)			(331)
Ending balance at original discount rate	—			—
Balance, end of period, at current discount rate at balance sheet date	$	—		$	—

Present Value of Expected FPBs
Balance, beginning of period, at current discount rate at balance sheet date	$	12,336		$	9,600

Balance, beginning of period, at original discount rate	$	11,588		$	9,133

Effect of actual variances from expected experience	(1)			(2)
Adjusted balance	11,587			9,131
Issuances	454			348
Interest accrual	106			88
Benefit payments	(238)			(188)
Inflation adjustment	38			120
Effect of foreign currency translation	(407)			400
Ending balance at original discount rate	11,540			9,899
Effect of changes in discount rate assumptions	941			468
Effect of foreign currency translation on the effect of changes in discount rate assumptions	(28)			21
Balance, end of period, at current discount rate at balance sheet date	12,453			10,388

Net liability for FPBs	$	12,453		$	10,388

Undiscounted - Expected future benefit payments	$	17,028		$	14,760
Discounted - Expected future benefit payments (at current discount rate at balance sheet date)	$	12,453		$	10,388
Weighted-average duration of the liability	11 years			11 years
Weighted-average interest accretion (original locked-in) rate	3.7		%	3.7		%
Weighted-average current discount rate at balance sheet date	2.7		%	3.1		%

Corporate & Other - Long-term Care

Corporate & Other’s long-term care products offer protection against potentially high costs of long-term health care services. Information regarding these products was as follows:


	Three Months Ended March 31,
	2026			2025
	(Dollars in millions)
Present Value of Expected Net Premiums
Balance, beginning of period, at current discount rate at balance sheet date	$	5,548		$	5,475

Balance, beginning of period, at original discount rate	$	5,515		$	5,568

Effect of actual variances from expected experience	21			(22)
Adjusted balance	5,536			5,546
Interest accrual	71			71
Net premiums collected	(142)			(140)
Ending balance at original discount rate	5,465			5,477
Effect of changes in discount rate assumptions	(42)			(35)
Balance, end of period, at current discount rate at balance sheet date	$	5,423		$	5,442

Present Value of Expected FPBs
Balance, beginning of period, at current discount rate at balance sheet date	$	20,772		$	20,012

Balance, beginning of period, at original discount rate	$	21,490		$	21,024

Effect of actual variances from expected experience	44			(10)
Adjusted balance	21,534			21,014
Interest accrual	283			276
Benefit payments	(250)			(225)
Ending balance at original discount rate	21,567			21,065
Effect of changes in discount rate assumptions	(1,166)			(907)
Balance, end of period, at current discount rate at balance sheet date	20,401			20,158

Net liability for FPBs	$	14,978		$	14,716

Undiscounted:
Expected future gross premiums	$	10,229		$	10,450
Expected future benefit payments	$	44,517		$	44,745
Discounted (at current discount rate at balance sheet date):
Expected future gross premiums	$	6,824		$	6,932
Expected future benefit payments	$	20,401		$	20,158
Weighted-average duration of the liability	13 years			13 years
Weighted-average interest accretion (original locked-in) rate	5.4		%	5.4		%
Weighted-average current discount rate at balance sheet date	6.0		%	5.8		%

Rollforwards - Additional Insurance Liabilities

The Company establishes additional insurance liabilities for annuitization, death or other insurance benefits for variable life, universal life, and variable universal life contract features whereby the Company guarantees to the contractholder either a secondary guarantee or a guaranteed paid-up benefit. The policy can remain in force, even if the base policy account value is zero, as long as contractual secondary guarantee requirements have been met.

The following information about the direct liability for additional insurance liabilities includes disaggregated rollforwards. The products grouped within these rollforwards were selected based upon common characteristics and valuations using similar inputs, judgments, assumptions and methodologies within a particular segment of the business. The adjusted balance in each disaggregated rollforward reflects the remeasurement (gains) losses. All amounts presented in these rollforwards and accompanying financial information do not include a reduction for amounts ceded to reinsurers.

Asia - Variable Life and Universal and Variable Universal Life

The Asia segment’s variable life and universal and variable universal life products in Japan offer a contract feature whereby the Company guarantees to the contractholder a secondary guarantee. Information regarding these additional insurance liabilities was as follows:


	Three Months Ended March 31,
	2026			2025			2026			2025
	Variable Life						Universal and Variable Universal Life
	(Dollars in millions)
Balance, beginning of period	$	1,074		$	1,108		$	330		$	355
Less: Accumulated other comprehensive income (loss) (“AOCI”) adjustment	—			—			32			10
Balance, beginning of period, before AOCI adjustment	1,074			1,108			298			345

Effect of actual variances from expected experience	(2)			(2)			(1)			(2)
Adjusted balance	1,072			1,106			297			343
Assessments accrual	(1)			(1)			(2)			—
Interest accrual	4			4			1			1
Excess benefits paid	(8)			(9)			—			—
Effect of foreign currency translation and other, net	(15)			57			(4)			18
Balance, end of period, before AOCI adjustment	1,052			1,157			292			362
Add: AOCI adjustment	—			—			35			10
Balance, end of period	$	1,052		$	1,157		$	327		$	372

Weighted-average duration of the liability	16 years			16 years			42 years			42 years
Weighted-average interest accretion rate	1.5		%	1.5		%	1.5		%	1.5		%

Corporate & Other - Universal and Variable Universal Life

Corporate & Other’s universal and variable universal life products provide a contract feature whereby the Company guarantees to the contractholder a secondary guarantee or a guaranteed paid-up benefit. Information regarding these additional insurance liabilities was as follows:


	Three Months Ended March 31,
	2026			2025
	Universal and Variable Universal Life
	(Dollars in millions)
Balance, beginning of period	$	2,713		$	2,496
Less: AOCI adjustment	(13)			(17)
Balance, beginning of period, before AOCI adjustment	2,726			2,513

Effect of actual variances from expected experience	7			11
Adjusted balance	2,733			2,524
Assessments accrual	27			27
Interest accrual	37			34
Excess benefits paid	(43)			(42)
Balance, end of period, before AOCI adjustment	2,754			2,543
Add: AOCI adjustment	(14)			(15)
Balance, end of period	2,740			2,528
Less: Reinsurance recoverables	2,389			2,197
Balance, end of period, net of reinsurance	$	351		$	331

Weighted-average duration of the liability	14 years			15 years
Weighted-average interest accretion rate	5.5		%	5.5		%

The Company’s gross premiums or assessments and interest expense recognized in the interim condensed consolidated statements of operations and comprehensive income (loss) for long-duration contracts, excluding Corporate & Other’s participating life contracts, were as follows:


		Three Months Ended March 31,
		2026				2025
		Gross Premiums or Assessments (1)		Interest Expense (2)		Gross Premiums or Assessments (1)		Interest Expense (2)
	(In millions)
Traditional and Limited-Payment Contracts:
RIS - Annuities		$	1,338	$	966	$	2,150	$	833
Asia:
Whole and term life & endowments		328		75		294		72
Accident & health		754		62		778		61
Latin America - Fixed annuities		450		104		331		87
Corporate & Other - Long-term care		179		212		180		205
Deferred Profit Liabilities:
RIS - Annuities		N/A		47		N/A		46
Asia:
Whole and term life & endowments		N/A		12		N/A		10
Accident & health		N/A		6		N/A		5
Latin America - Fixed annuities		N/A		5		N/A		5
Additional Insurance Liabilities:
Asia:
Variable life		51		4		32		4
Universal and variable universal life		16		1		—		1
Corporate & Other - Universal and variable universal life		149		37		159		34
Other long-duration		1,692		126		1,152		122
Total		$	4,957	$	1,657	$	5,076	$	1,485

__________________

(1)Gross premiums are related to traditional and limited-payment contracts and are included in premiums. Assessments are related to additional insurance liabilities and are included in universal life and investment-type product policy fees and net investment income.

(2)Interest expense is included in policyholder benefits and claims.

Liabilities for Unpaid Claims and Claim Expenses

Rollforward of Claims and Claim Adjustment Expenses

Information regarding the liabilities for unpaid claims and claim adjustment expenses was as follows:


	Three Months Ended March 31,
	2026		2025
	(In millions)
Balance, beginning of period	$	17,130	$	16,118
Less: Reinsurance recoverables	2,906		2,790
Net balance, beginning of period	14,224		13,328
Incurred related to:
Current period	7,380		7,354
Prior periods (1)	6		54
Total incurred	7,386		7,408
Paid related to:
Current period	(3,589)		(3,480)
Prior periods	(3,429)		(3,356)
Total paid	(7,018)		(6,836)


Net balance, end of period	14,592		13,900
Add: Reinsurance recoverables	3,048		2,905
Balance, end of period (included in FPBs and other policy-related balances)	$	17,640	$	16,805

__________________

(1)For the three months ended March 31, 2026 and 2025, incurred claims and claim adjustment expenses associated with prior periods increased due to events incurred in prior periods but reported in the respective current period.