v3.26.1
Future Policy Benefits
 3 Months Ended
Mar. 31, 2026
Insurance [Abstract]  
Future Policy Benefits Future Policy Benefits
The following table summarizes balances and changes in the present value of expected net premiums and the present value of the expected FPB for nonparticipating traditional contracts:
Traditional life
March 31, 2026December 31, 2025
Expected net premiums(Dollars in millions)
Balance, beginning of year$585 $631 
Beginning balance at original discount rate700 780 
     Effect of actual variances from expected experience(2)1 
Balance adjusted for variances from expectation698 781 
     Interest accrual3 15 
     Net premiums collected(22)(96)
Ending balance at original discount rate679 700 
     Effect of changes in discount rate assumptions(120)(115)
Balance, end of period$559 $585 
Expected FPB
Balance, beginning of year$1,855 $1,933 
Beginning balance at original discount rate2,167 2,368 
     Effect of actual variances from expected experience(3)(21)
Balance adjusted for variances from expectation2,164 2,347 
     Interest accrual12 50 
     Benefits payments(50)(230)
Ending balance at original discount rate2,126 2,167 
     Effect of changes in discount rate assumptions(334)(312)
Balance, end of period$1,792 $1,855 
Net liability for future policy benefits$1,233 $1,270 
Less: Reinsurance recoverable498 489 
Net liability for future policy benefits, after reinsurance recoverable$735 $781 
Weighted-average duration of liability for future policyholder benefits (years)6.026.84
The following tables summarize balances and changes in the present value of the expected FPB for limited-payment contracts:
PRT
March 31, 2026December 31, 2025
(Dollars in millions)
Balance, beginning of year$8,112 $6,054 
Beginning balance at original discount rate8,268 6,417 
     Effect of changes in cash flow assumptions— (36)
     Effect of actual variances from expected experience1 13 
Balance adjusted for variances from expectation8,269 6,394 
     Issuances333 2,206 
     Interest accrual99 331 
     Benefits payments(202)(663)
Ending balance at original discount rate8,499 8,268 
     Effect of changes in discount rate assumptions(321)(156)
Balance, end of period$8,178 $8,112 
Net liability for future policy benefits, after reinsurance recoverable$8,178 $8,112 
Weighted-average duration of liability for future policyholder benefits (years)7.627.80

Immediate annuities
March 31, 2026December 31, 2025
(Dollars in millions)
Balance, beginning of year$1,276 $1,297 
Beginning balance at original discount rate1,679 1,732 
     Effect of actual variances from expected experience4 (11)
Balance adjusted for variances from expectation1,683 1,721 
     Issuances5 17 
     Interest accrual13 54 
     Benefits payments(28)(113)
Ending balance at original discount rate1,673 1,679 
     Effect of changes in discount rate assumptions(431)(403)
Balance, end of period$1,242 $1,276 
Net liability for future policy benefits$1,242 $1,276 
Less: Reinsurance recoverable104 106 
Net liability for future policy benefits, after reinsurance recoverable$1,138 $1,170 
Weighted-average duration of liability for future policyholder benefits (years)12.2212.32
The following tables summarize balances and changes in the liability for deferred profit liability ("DPL") for limited-payment contracts:
March 31, 2026December 31, 2025
Immediate annuitiesPRTImmediate annuitiesPRT
(In millions)
Balance, beginning of year$90 $7 $90 $6 
     Effect of actual variances from expected experience(2)1 2 1 
Balance adjusted for variances from expectation88 8 92 7 
     Issuances1 — 6 1 
     Interest accrual— — 1 — 
     Amortization(2)— (9)(1)
Balance, end of period$87 $8 $90 $7 
The following table reconciles the net FPB to the FPB in the unaudited Condensed Consolidated Balance Sheets. The DPL for Immediate Annuities and PRT is presented together with the FPB in the unaudited Condensed Consolidated Balance Sheets and has been included as a reconciling item in the table below:
March 31, 2026December 31, 2025
(In millions)
Traditional life$1,233 $1,270 
Immediate annuities1,242 1,276 
PRT8,178 8,112 
Immediate annuities DPL87 90 
PRT DPL8 7 
Total$10,748 $10,755 
The following table provides the amount of undiscounted and discounted expected gross premiums and expected future benefits and expenses for nonparticipating traditional and limited-payment contracts:
UndiscountedDiscounted
March 31,March 31,
2026202520262025
Traditional life(In millions)
Expected future benefit payments$2,458 $2,720 $1,794 $1,938 
Expected future gross premiums821 923 601 671 
Immediate annuities
Expected future benefit payments$3,082 $3,168 $1,242 $1,297 
Expected future gross premiums— — — — 
PRT
Expected future benefit payments$13,431 $10,535 $8,178 $6,360 
Expected future gross premiums— — — — 
The following table summarizes the amount of revenue and interest related to nonparticipating traditional and limited-payment contracts recognized in the unaudited Condensed Consolidated Statements of Earnings:
Gross Premiums (a)Interest Expense (b)
March 31,March 31,
2026202520262025
(In millions)
Traditional life$23 $26 $9 $9 
Immediate annuities5 6 13 14 
PRT324 311 99 74 
Total$352 $343 $121 $97 
(a) Included in Life insurance premiums and other fees on the unaudited Condensed Consolidated Statements of Earnings.
(b) Included in Benefits and other changes in policy reserves on the unaudited Condensed Consolidated Statements of Earnings.
The following table presents the weighted-average interest rate:
March 31, 2026December 31, 2025
Traditional life
Interest accretion rate2.36 %2.35 %
Current discount rate5.07 %4.77 %
Immediate annuities
Interest accretion rate3.22 %3.20 %
Current discount rate5.59 %5.29 %
PRT
Interest accretion rate4.96 %4.87 %
Current discount rate5.28 %4.98 %
The following tables summarize the actual experience and expected experience for mortality and lapses of the FPB:
March 31, 2026
Traditional lifeImmediate annuities PRT
Mortality
Actual experience1.3 %1.1 %3.5 %
Expected experience1.6 %1.7 %2.5 %
Lapses
Actual experience— %— %— %
Expected experience0.5 %— %— %
December 31, 2025
Traditional lifeImmediate annuities PRT
Mortality
Actual experience2.4 %2.4 %2.6 %
Expected experience1.6 %1.7 %2.5 %
Lapses
Actual experience— %— %— %
Expected experience0.6 %— %— %

The following table provides additional information for periods in which a cohort has a net premium ratio ("NPR") greater than 100% (and therefore capped at 100%) (dollars in millions):
March 31, 2026December 31, 2025
Cohort XDescriptionCohort XDescription
NPR before capping103 %Term with return of premium Non-NY Cohort104 %Term with return of premium Non-NY Cohort
Reserves before NPR capping$1,113 Term with return of premium Non-NY Cohort$1,145 Term with return of premium Non-NY Cohort
Reserves after NPR capping1,122 Term with return of premium Non-NY Cohort1,156 Term with return of premium Non-NY Cohort
Loss Expense9 Term with return of premium Non-NY Cohort11 Term with return of premium Non-NY Cohort
F&G made changes to assumptions during the three months ended March 31, 2026 and the year ended December 31, 2025. Significant assumption inputs used in the calculation of our FPB are described below. Refer to the tables above for further details on changes to our FPB.
Traditional life
The traditional life line of business primarily consists of policies that were sold prior to 2010. As this line of business continues to age, benefit payments made from these contracts will be the primary driver of the emergence of reserves, decreasing the reserve balance.
Significant assumption inputs to the calculation of the FPB for traditional life include mortality, lapses (including lapses due to nonpayment of premium and surrenders for cash surrender value), and discount rates (both accretion and current). F&G reviews the cash flow assumptions annually, typically in the third quarter. In 2025, F&G updated the assumptions for surrenders and lapses. Updates to these assumptions brought F&G more in line with internal and overall industry experience since the prior assumption updates. These assumption updates resulted in a decrease to the FPB liability for the year ended December 31, 2025. In 2026, no updates have been made to any significant assumptions used in the FPB liability.
Market data that underlies current discount rates was updated in 2026 from that utilized in 2025 resulting in increased discount rates that drove a decrease to the FPB.
Immediate annuities (life contingent)
Significant assumption inputs to the calculation of the FPB for immediate annuities (life contingent) include mortality and discount rates (both accretion and current). F&G reviews the cash flow assumptions annually, typically in the third quarter. In 2025, F&G undertook a review of the significant cash flow assumptions and did not make any changes to mortality. Market data that underlies current discount rates was updated in 2026 from that utilized in 2025 resulting in increased discount rates that drove a decrease to the FPB.
PRT (life contingent)
The PRT line of business has issued a significant volume of contracts for 2026 and 2025, which is the primary impact in increasing the reserve balance in each of those periods.
Significant assumption inputs to the calculation of the FPB for PRT (life contingent) include mortality and discount rates (both accretion and current). Additionally, for PRT contracts with deferred payment streams, retirement age and elected payment form are significant assumptions. F&G reviews the cash flow assumptions annually, typically in the third quarter. In 2025, F&G undertook a review of the significant cash flow assumptions and did not make any changes to any significant assumptions. Market data that underlies current discount rates was updated in 2026 from that utilized in 2025 resulting in increased discount rates that drove a decrease to the FPB.
Premium deficiency testing
F&G conducts annual premium deficiency testing for its long-duration contracts except for the FPB for nonparticipating traditional and limited-payment contracts. F&G also conducts annual premium deficiency testing for the VOBA of all long-duration contracts. Premium deficiency testing is performed by reviewing assumptions used to calculate the insurance liabilities and determining whether the sum of the existing contract liabilities and the present value of future gross premiums is sufficient to cover the present value of future benefits to be paid to or on behalf of policyholders and settlement costs and recover unamortized present value of future profits. Anticipated investment income, based on F&G’s experience, is considered when performing premium deficiency testing for long-duration contracts. F&G began accruing a liability in the fourth quarter of 2024 that increases the amortization of traditional life VOBA. The liability balance was immaterial at both March 31, 2026 and December 31, 2025.