Future Policy Benefits

3 Months Ended

Mar. 31, 2026

Liability for Future Policy Benefits and Unpaid Claims Disclosure

FUTURE POLICY BENEFITS

It is the Company’s policy to complete its annual assumptions review during the third quarter of each year. However, each period, the Company reviews actual and anticipated experience compared to the assumptions used to compute the liability for future policy benefits and will update those assumptions in the period that indicates an assumption update is necessary.

Traditional Business

The following tables provide the balances of and changes in the Company’s liability for future policy benefits for long-duration reinsurance contracts for its Traditional business, which primarily consists of individual life, group life and critical illness reinsurance for the three months ended March 31, 2026 and 2025 (dollars in millions). During the first quarter, the Company reclassified amounts previously presented in the “Derecognition” line related to recaptures and treaty amendments that resulted in the termination of an existing treaty and the reissuance under a new treaty to the “Effects of actual variances from expected experience” line in the rollforwards below. Prior periods have been recast to conform with the current presentation. This change in presentation did not affect the consolidated balance sheet, income statement or cash flows previously reported.


For the three months ended March 31, 2026:	U.S. and Latin America – Traditional		Canada – Traditional		Europe, Middle East and Africa – Traditional		Asia Pacific – Traditional
Present Value of Expected Net Premiums
Beginning of year balance at original discount rate	$	79,828	$	23,247	$	18,353	$	50,206
Effect of changes in cash flow assumptions	—		—		—		—
Effect of actual variances from expected experience	(449)		(52)		322		15
Adjusted balance, beginning of year	79,379		23,195		18,675		50,221
Issuances (1)	1,371		109		957		2,182
Interest accrual (2)	902		201		165		362
Net premiums collected (3)	(1,314)		(253)		(531)		(640)
Foreign currency translation	—		(314)		(359)		(604)
Ending balance at original discount rate	80,338		22,938		18,907		51,521
Effect of changes in discount rate assumptions	(9,217)		(4,901)		(3,560)		(13,256)
Balance, end of period	$	71,121	$	18,037	$	15,347	$	38,265

Present Value of Expected Future Policy Benefits
Beginning of year balance at original discount rate	$	94,710	$	26,896	$	20,363	$	55,572
Effect of changes in cash flow assumptions	—		—		—		—
Effect of actual variances from expected experience	(455)		(56)		312		23
Adjusted balance, beginning of year	94,255		26,840		20,675		55,595
Issuances (1)	1,371		109		967		2,171
Interest accrual (2)	1,082		257		177		410
Benefit payments (4)	(1,369)		(262)		(496)		(529)
Foreign currency translation	—		(365)		(394)		(632)
Ending balance at original discount rate	95,339		26,579		20,929		57,015
Effect of changes in discount rate assumptions	(11,719)		(4,461)		(4,195)		(15,811)
Balance, end of period	$	83,620	$	22,118	$	16,734	$	41,204

Liability for future policy benefits	$	12,499	$	4,081	$	1,387	$	2,939
Less: reinsurance recoverable	(813)		(248)		(14)		(70)
Net liability for future policy benefits	$	11,686	$	3,833	$	1,373	$	2,869


Weighted average duration of the liability (in years)	11		14		8		15
Weighted average interest accretion rate	4.6	%	3.7	%	3.5	%	2.9	%
Weighted average current discount rate	5.7	%	5.1	%	6.2	%	4.9	%

(1)Issuances: The present value, using the original discount rate, of the expected net premiums or the expected future policy benefits related to new insurance contracts that became effective during the current period and new policies assumed on existing contracts.

(2)Interest accrual: The interest earned on the beginning present value of either the expected net premiums or the expected future policy benefits using the original interest rate.

(3)Net premiums collected: The portion of gross premiums collected from the ceding company that is used to fund expected benefit payments.

(4)Benefit payments: The release of the present value, using the original discount rate, of the expected future policy benefits due to death, lapse/withdrawal and other benefit payments based on current assumptions.


For the three months ended March 31, 2025:	U.S. and Latin America – Traditional		Canada – Traditional		Europe, Middle East and Africa – Traditional		Asia Pacific – Traditional
Present Value of Expected Net Premiums
Beginning of year balance at original discount rate	$	77,881	$	20,928	$	15,911	$	44,801
Effect of changes in cash flow assumptions	—		—		—		—
Effect of actual variances from expected experience	(300)		23		199		(195)
Adjusted balance, beginning of year	77,581		20,951		16,110		44,606
Issuances (1)	3,467		100		438		1,327
Interest accrual (2)	887		179		140		304
Net premiums collected (3)	(3,049)		(231)		(454)		(594)
Foreign currency translation	1		(6)		517		135
Ending balance at original discount rate	78,887		20,993		16,751		45,778
Effect of changes in discount rate assumptions	(8,126)		(3,839)		(3,099)		(12,641)
Balance, end of period	$	70,761	$	17,154	$	13,652	$	33,137

Present Value of Expected Future Policy Benefits
Beginning of year balance at original discount rate	$	90,711	$	24,309	$	17,365	$	49,712
Effect of changes in cash flow assumptions	—		—		—		—
Effect of actual variances from expected experience	(349)		23		190		(211)
Adjusted balance, beginning of year	90,362		24,332		17,555		49,501
Issuances (1)	3,467		100		438		1,327
Interest accrual (2)	1,061		231		150		347
Benefit payments (4)	(1,332)		(261)		(401)		(524)
Foreign currency translation	2		(5)		568		152
Ending balance at original discount rate	93,560		24,397		18,310		50,803
Effect of changes in discount rate assumptions	(10,348)		(3,093)		(3,481)		(14,999)
Balance, end of period	$	83,212	$	21,304	$	14,829	$	35,804

Liability for future policy benefits	$	12,451	$	4,150	$	1,177	$	2,667
Less: reinsurance recoverable	(800)		(259)		(19)		(75)
Net liability for future policy benefits	$	11,651	$	3,891	$	1,158	$	2,592


Weighted average duration of the liability (in years)	11		14		8		15
Weighted average interest accretion rate	4.6	%	3.7	%	3.4	%	2.8	%
Weighted average current discount rate	5.6	%	4.7	%	5.8	%	4.7	%

(2)Interest accrual: The interest earned on the beginning present value of either the expected net premiums or the expected future policy benefits using the original interest rate.

(3)Net premiums collected: The portion of gross premiums collected from the ceding company that is used to fund expected benefit payments.

The Company’s Traditional business actual-to-expected variances, including the effects of treaty recaptures, and the effects of changes in cash flow and discount rate assumptions for the three months ended March 31, 2026 and 2025 are summarized in the tables below:

For the three months ended March 31, 2026:

Segment

Liability for future policy benefits at original discount rate

Changes in cash flow assumptions

Actual-to-expected variance

Impact of updating discount rate recognized in OCI

U.S. and Latin America – Traditional

$15.0 billion

None

$(6) million

$(305) million

Canada – Traditional

$3.6 billion

None

$(4) million

$(54) million

Europe, Middle East and Africa – Traditional

$2.0 billion

None

$(10) million

$(70) million

Asia Pacific – Traditional

$5.5 billion

None

$8 million

$(68) million

For the three months ended March 31, 2025:

Segment

Liability for future policy benefits at original discount rate

Change in cash flow assumptions

Actual-to-expected variance

Impact of updating discount rate recognized in OCI

U.S. and Latin America – Traditional

$14.7 billion

None

$(49) million

$70 million

Canada – Traditional

$3.4 billion

None

$27 million

Europe, Middle East and Africa – Traditional

$1.6 billion

None

$(9) million

$(48) million

Asia Pacific – Traditional

$5.0 billion

None

$(16) million

$(50) million

Financial Solutions Business

The following tables provide the balances of and changes in the Company’s liability for future policy benefits, including the deferred profit liability related to the longevity business, for its Financial Solutions business, which primarily consists of longevity reinsurance, asset-intensive products (primarily annuities), financial reinsurance and pension risk transfer transactions, for the three months ended March 31, 2026 and 2025 (dollars in millions). During the first quarter the Company reclassified amounts previously presented in the “Derecognition” line related to recaptures and treaty amendments that resulted in the termination of an existing treaty and the reissuance under a new treaty to the “Effects of actual variances from expected experience” line in the rollforwards below. Prior periods have been recast to conform with the current presentation. This change in presentation did not affect the consolidated balance sheet, income statement or cash flows previously reported.


For the three months ended March 31, 2026:	U.S. and Latin America – Financial Solutions		Canada – Financial Solutions		Europe, Middle East and Africa – Financial Solutions		Asia Pacific – Financial Solutions
Present Value of Expected Net Premiums
Beginning of year balance at original discount rate	$	2,627	$	3,518	$	87,259	$	2,106
Effect of changes in cash flow assumptions	—		—		—		—
Effect of actual variances from expected experience	(12)		2		62		15
Adjusted balance, beginning of year	2,615		3,520		87,321		2,121
Issuances (1)	528		—		5,662		6,553
Interest accrual (2)	26		32		871		11
Net premiums collected (3)	(567)		(90)		(1,765)		(7,015)
Foreign currency translation	—		(48)		(1,684)		(19)
Ending balance at original discount rate	2,602		3,414		90,405		1,651
Effect of changes in discount rate assumptions	(219)		(231)		(13,781)		(836)
Balance, end of period	$	2,383	$	3,183	$	76,624	$	815

Present Value of Expected Future Policy Benefits
Beginning of year balance at original discount rate	$	13,388	$	8,160	$	98,153	$	16,870
Effect of changes in cash flow assumptions	—		—		—		—
Effect of actual variances from expected experience	—		1		51		14
Adjusted balance, beginning of year	13,388		8,161		98,204		16,884
Issuances (1)	534		—		5,662		6,553
Interest accrual (2)	160		88		976		131
Benefit payments (4)	(330)		(133)		(1,995)		(231)
Foreign currency translation	—		(110)		(1,873)		(237)
Ending balance at original discount rate	13,752		8,006		100,974		23,100
Effect of changes in discount rate assumptions	(583)		(294)		(15,093)		(4,993)
Balance, end of period	$	13,169	$	7,712	$	85,881	$	18,107

Cumulative amount of fair value hedging adjustments	$	(3)	$	—	$	—	$	—

Liability for future policy benefits	$	10,783	$	4,529	$	9,257	$	17,292
Less: reinsurance recoverable	(2,984)		—		—		—
Net liability for future policy benefits	$	7,799	$	4,529	$	9,257	$	17,292


Weighted average duration of the liability (in years)	9		12		9		12
Weighted average interest accretion rate	4.4	%	4.1	%	4.0	%	2.5	%
Weighted average current discount rate	5.5	%	5.0	%	5.9	%	5.0	%

(2)Interest accrual: The interest earned on the beginning present value of either the expected net premiums or the expected future policy benefits using the original interest rate.

(3)Net premiums collected: The portion of gross premiums collected from the ceding company that is used to fund expected benefit payments.


For the three months ended March 31, 2025:	U.S. and Latin America – Financial Solutions		Canada – Financial Solutions		Europe, Middle East and Africa – Financial Solutions		Asia Pacific – Financial Solutions
Present Value of Expected Net Premiums
Beginning of year balance at original discount rate	$	1,346	$	3,614	$	71,360	$	2,758
Effect of changes in cash flow assumptions	—		—		—		—
Effect of actual variances from expected experience	—		(7)		(261)		3
Adjusted balance, beginning of year	1,346		3,607		71,099		2,761
Issuances (1)	2,113		—		1,347		1,731
Interest accrual (2)	10		33		622		11
Net premiums collected (3)	(2,178)		(92)		(1,354)		(2,085)
Foreign currency translation	—		(2)		2,485		146
Ending balance at original discount rate	1,291		3,546		74,199		2,564
Effect of changes in discount rate assumptions	(231)		(149)		(10,155)		(394)
Balance, end of period	$	1,060	$	3,397	$	64,044	$	2,170

Present Value of Expected Future Policy Benefits
Beginning of year balance at original discount rate	$	9,489	$	7,934	$	78,290	$	14,626
Effect of changes in cash flow assumptions	—		—		—		—
Effect of actual variances from expected experience	(1)		(7)		(264)		—
Adjusted balance, beginning of year	9,488		7,927		78,026		14,626
Issuances (1)	2,113		—		1,347		1,731
Interest accrual (2)	133		86		684		70
Benefit payments (4)	(259)		(110)		(1,472)		(150)
Foreign currency translation	—		(2)		2,712		638
Ending balance at original discount rate	11,475		7,901		81,297		16,915
Effect of changes in discount rate assumptions	(535)		92		(11,177)		(2,345)
Balance, end of period	$	10,940	$	7,993	$	70,120	$	14,570

Cumulative amount of fair value hedging adjustments	$	6	$	—	$	—	$	—

Liability for future policy benefits	$	9,886	$	4,596	$	6,076	$	12,400
Less: reinsurance recoverable	(1,370)		—		—		—
Net liability for future policy benefits	$	8,516	$	4,596	$	6,076	$	12,400


Weighted average duration of the liability (in years)	9		13		9		15
Weighted average interest accretion rate	4.1	%	4.1	%	3.5	%	1.7	%
Weighted average current discount rate	5.5	%	4.6	%	5.4	%	3.3	%

(2)Interest accrual: The interest earned on the beginning present value of either the expected net premiums or the expected future policy benefits using the original interest rate.

(3)Net premiums collected: The portion of gross premiums collected from the ceding company that is used to fund expected benefit payments.

The Company’s Financial Solutions business actual-to-expected variances, including the effects of model updates and treaty recaptures, and the effects of changes in cash flow and discount rate assumptions for the three months ended March 31, 2026 and 2025 are summarized in the tables below:

For the three months ended March 31, 2026:

Segment

Liability for future policy benefits at original discount rate

Changes in cash flow assumptions

Actual-to-expected variance

Impact of updating discount rate recognized in OCI

U.S. and Latin America – Financial Solutions

$11.2 billion

None

$12 million

$(166) million

Canada – Financial Solutions

$4.6 billion

None

$(1) million

$(35) million

Europe, Middle East and Africa – Financial Solutions

$10.6 billion

None

$(11) million

$(421) million

Asia Pacific – Financial Solutions

$21.4 billion

None

$(1) million

$(619) million

For the three months ended March 31, 2025:

Segment

Liability for future policy benefits at original discount rate

Changes in cash flow assumptions

Actual-to-expected variance

Impact of updating discount rate recognized in OCI

U.S. and Latin America – Financial Solutions

$10.2 billion

None

$(1) million

$93 million

Canada – Financial Solutions

$4.4 billion

None

$49 million

Europe, Middle East and Africa – Financial Solutions

$7.1 billion

None

$(3) million

$(127) million

Asia Pacific – Financial Solutions

$14.4 billion

None

$(3) million

$(365) million

Reconciliation and Other Disclosures

The reconciliation of the rollforward of the liability for future policy benefits to the condensed consolidated balance sheets as of March 31, 2026, and 2025 are as follows (dollars in millions):


	March 31,
	2026		2025
Liability for future policy benefits included in the rollforwards:
Traditional:
U.S. and Latin America	$	12,499	$	12,451
Canada	4,081		4,150
Europe, Middle East and Africa	1,387		1,177
Asia Pacific	2,939		2,667
Financial Solutions:
U.S. and Latin America	10,783		9,886
Canada	4,529		4,596
Europe, Middle East and Africa	9,257		6,076
Asia Pacific	17,292		12,400
Other long-duration contracts	265		136
Claims liability and incurred but not reported claims	6,420		5,367
Additional liability	442		101
Unearned revenue liability	793		829
Cost of reinsurance liability	1,621		—
Total liability for future policy benefits	$	72,308	$	59,836

The amount of undiscounted and discounted expected future gross premiums and expected future benefit payments for the liability for future policy benefits included in the rollforwards as of March 31, 2026, and 2025 is as follows (dollars in millions):


	March 31,
	2026				2025
	Undiscounted		Discounted		Undiscounted		Discounted
Expected future gross premiums
Traditional:
U.S. and Latin America	$	195,188	$	85,394	$	183,915	$	84,218
Canada	57,804		22,345		52,094		21,326
Europe, Middle East and Africa	32,244		17,060		28,701		15,240
Asia Pacific	127,336		48,532		104,940		42,040
Financial Solutions:
U.S. and Latin America	5,240		3,258		2,648		1,666
Canada	5,344		3,506		5,689		3,768
Europe, Middle East and Africa	165,527		77,830		129,865		65,091
Asia Pacific	5,957		3,776		5,292		3,707

Expected future benefit payments
Traditional:
U.S. and Latin America	$	201,880	$	83,620	$	196,448	$	83,212
Canada	58,661		22,118		53,586		21,304
Europe, Middle East and Africa	32,795		16,734		28,718		14,829
Asia Pacific	121,664		41,204		101,929		35,804
Financial Solutions:
U.S. and Latin America	26,202		13,169		22,679		10,940
Canada	17,277		7,712		17,252		7,993
Europe, Middle East and Africa	179,589		85,881		139,460		70,120
Asia Pacific	43,292		18,107		27,778		14,570

The amount of gross premiums and interest expense recognized in the condensed consolidated statements of income for the liability for future policy benefits included in the rollforwards for the three months ended March 31, 2026 and 2025 are as follows (dollars in millions):


	Gross Premiums				Interest Expense
	March 31,				March 31,
	2026		2025		2026		2025
Traditional:
U.S. and Latin America	$	1,584	$	1,589	$	180	$	174
Canada	282		264		56		52
Europe, Middle East and Africa	492		444		12		10
Asia Pacific	807		738		48		43
Financial Solutions:
U.S. and Latin America	189		105		$	134	$	123
Canada	45		52		56		53
Europe, Middle East and Africa	347		255		105		62
Asia Pacific	149		111		120		59
Total	$	3,895	$	3,558	$	711	$	576

During the three months ended March 31, 2026 and 2025, no material charges were incurred resulting from net premiums exceeding gross premiums.