Insurance Liabilities (Tables)

Information regarding liability for future policy benefits (“LFPB”) for non-participating traditional and limited-payment contracts was as follows:


	Three Months Ended March 31,
	2026									2025
	Term and Whole Life Insurance			Income Annuities			Structured Settlement and Pension Risk Transfer Annuities			Term and Whole Life Insurance			Income Annuities			Structured Settlement and Pension Risk Transfer Annuities
	(Dollars in millions)
Present value of expected net premiums:
Balance, beginning of period	$	2,462		$	—		$	—		$	2,758		$	—		$	—
Beginning balance at original discount rate	2,705			—			—			3,110			—			—


Effect of actual variances from expected experience	(27)			—			—			1			—			—
Adjusted beginning of period balance	2,678			—			—			3,111			—			—
Issuances	2			—			—			5			—			—
Interest accrual	24			—			—			28			—			—
Net premiums collected	(82)			—			—			(82)			—			—
Ending balance at original discount rate	2,622			—			—			3,062			—			—
Effect of changes in discount rate assumptions	(270)			—			—			(320)			—			—
Balance, end of period	$	2,352		$	—		$	—		$	2,742		$	—		$	—
Present value of expected future policy benefits:
Balance, beginning of period	$	4,984		$	3,947		$	6,009		$	5,245		$	3,728		$	6,118
Beginning balance at original discount rate	5,446			4,231			6,635			5,908			4,121			6,876
Effect of model refinements	—			—			—			1			—			—

Effect of actual variances from expected experience	(42)			(9)			(1)			9			(21)			(19)
Adjusted beginning of period balance	5,404			4,222			6,634			5,918			4,100			6,857
Issuances	2			99			—			6			79			—
Interest accrual	49			42			72			53			40			74
Benefit payments	(104)			(105)			(136)			(150)			(100)			(133)
Ending balance at original discount rate	5,351			4,258			6,570			5,827			4,119			6,798
Effect of changes in discount rate assumptions	(523)			(343)			(734)			(592)			(346)			(689)
Balance, end of period	$	4,828		$	3,915		$	5,836		$	5,235		$	3,773		$	6,109
Net liability for future policy benefits, end of period	$	2,476		$	3,915		$	5,836		$	2,493		$	3,773		$	6,109
Less: Reinsurance recoverable, end of period	15			31			54			16			31			59
Net liability for future policy benefits, after reinsurance recoverable	$	2,461		$	3,884		$	5,782		$	2,477		$	3,742		$	6,050
Weighted-average duration of liability	7.0 years			7.6 years			11.5 years			7.5 years			7.9 years			11.5 years
Weighted-average interest accretion rate	3.90		%	4.14		%	4.47		%	3.91		%	4.06		%	4.46		%
Current discount rate	5.25		%	5.37		%	5.67		%	5.24		%	5.31		%	5.54		%
Gross premiums or assessments recognized during period	$	116		$	133		$	—		$	137		$	104		$	—
Expected future gross premiums, undiscounted	$	4,828		$	—		$	—		$	5,599		$	—		$	—
Expected future gross premiums, discounted	$	3,640		$	—		$	—		$	4,164		$	—		$	—
Expected future benefit payments, undiscounted	$	7,138		$	5,918		$	12,684		$	7,898		$	5,751		$	13,173
Expected future benefit payments, discounted	$	5,351		$	4,258		$	6,570		$	5,827		$	4,119		$	6,798

Information regarding the additional insurance liabilities for universal life-type contracts with secondary guarantees was as follows:


	Three Months Ended March 31,
	2026			2025
	(Dollars in millions)
Balance, beginning of period	$	10,077		$	8,986
Beginning balance before the effect of unrealized gains and losses	10,298			9,277

Effect of actual variances from expected experience	45			63
Adjusted beginning of period balance	10,343			9,340
Interest accrual	126			113
Net assessments collected	122			116
Benefit payments	(124)			(146)

Ending balance before the effect of unrealized gains and losses	10,467			9,423
Effect of unrealized gains and losses	(251)			(250)
Balance, end of period	10,216			9,173
Less: Reinsurance recoverable, end of period	1,818			1,551
Net additional liability, after reinsurance recoverable	$	8,398		$	7,622
Weighted-average duration of liability	6.6 years			6.6 years
Weighted-average interest accretion rate	4.95		%	4.95		%
Gross assessments recognized during period	$	257		$	257

A reconciliation of the net LFPBs for non-participating traditional and limited-payment contracts and the additional insurance liabilities for universal life-type contracts with secondary guarantees reported in the preceding rollforward tables to LFPBs on the consolidated balance sheets was as follows at:


	March 31,
	2026		2025
	(In millions)
Liabilities reported in the preceding rollforward tables	$	22,443	$	21,548
Long-term care insurance (1)	5,046		5,191
ULSG liabilities, including liability for profits followed by losses	58		965
Participating whole life insurance (2)	3,071		2,987
Deferred profit liabilities	452		448
Other	354		303
Total liability for future policy benefits	$	31,424	$	31,442

(1)Includes liabilities related to fully reinsured individual long-term care insurance. See Note 2.

(2)Participating whole life insurance uses an interest assumption based on the non-forfeiture interest rate, ranging from 3.5% to 4.0%, and mortality rates guaranteed in calculating the cash surrender values described in such contracts, and also includes a liability for terminal dividends. Participating whole life insurance represented 3% of the Company’s life insurance in-force at both March 31, 2026 and 2025, and 38% and 39% of gross traditional life insurance premiums for the three months ended March 31, 2026 and 2025, respectively.

Information regarding policyholder account balances was as follows:


	Universal Life Insurance			Variable Annuities (1)			Index-linked Annuities			Fixed Rate Annuities			ULSG			Company-Owned Life Insurance (1)
	(Dollars in millions)
Three Months Ended March 31, 2026
Balance, beginning of period	$	2,074		$	3,265		$	52,594		$	13,252		$	4,461		$	646
Premiums and deposits	58			11			1,955			57			151			—
Surrenders and withdrawals	(8)			(111)			(2,197)			(373)			(6)			—
Benefit payments	(13)			(18)			(113)			(98)			(20)			(5)
Net transfers from (to) separate account	3			14			—			—			—			—
Interest credited	13			23			196			133			38			8
Policy charges	(45)			(5)			(12)			—			(236)			(2)
Changes related to embedded derivatives	1			—			(816)			—			—			—

Balance, end of period	$	2,083		$	3,179		$	51,607		$	12,971		$	4,388		$	647
Weighted-average crediting rate (2)	0.63		%	0.71		%	0.48		%	1.01		%	0.86		%	1.08		%
Three Months Ended March 31, 2025
Balance, beginning of period	$	2,028		$	3,667		$	48,605		$	14,665		$	4,779		$	1,166
Premiums and deposits	65			14			1,984			105			157			—
Surrenders and withdrawals	(20)			(134)			(1,614)			(300)			(6)			—
Benefit payments	(13)			(23)			(86)			(95)			(14)			(2)
Net transfers from (to) separate account	3			28			—			—			—			(495)
Interest credited	19			23			192			141			39			6
Policy charges	(48)			(5)			(8)			—			(245)			(2)
Changes related to embedded derivatives	—			—			(1,177)			—			—			—

Balance, end of period	$	2,034		$	3,570		$	47,896		$	14,516		$	4,710		$	673
Weighted-average crediting rate (2)	0.94		%	0.64		%	0.48		%	0.97		%	0.82		%	0.65		%

_______________

(1)Includes liabilities related to separate account products where the contract holder elected a general account investment option.

(2)Excludes the effects of embedded derivatives related to index-linked crediting rates.

A reconciliation of policyholder account balances reported in the preceding rollforward table to the liability for policyholder account balances on the consolidated balance sheets was as follows at:


	March 31,
	2026		2025
	(In millions)
Policyholder account balances reported in the preceding rollforward table	$	74,875	$	73,399
Funding agreements classified as investment contracts	9,353		10,116
Institutional group annuities	595		401
Other investment contract liabilities	797		883
Total policyholder account balances	$	85,620	$	84,799

The balance of account values 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 was as follows at:


Range of Guaranteed Minimum Crediting Rate	At Guaranteed Minimum		1 to 50 Basis Points Above		51 to 150 Basis Points Above		Greater than 150 Basis Points Above		Total
	(In millions)
March 31, 2026
Annuities (1):
Less than 2.00%	$	365	$	142	$	186	$	7,995	$	8,688
2.00% to 3.99%	6,059		498		429		324		7,310
Greater than 3.99%	723		—		—		—		723
Total	$	7,147	$	640	$	615	$	8,319	$	16,721
Life insurance (2) (3):
Less than 2.00%	$	—	$	—	$	—	$	435	$	435
2.00% to 3.99%	—		470		44		112		626
Greater than 3.99%	957		—		—		—		957
Total	$	957	$	470	$	44	$	547	$	2,018
ULSG (3):
Less than 2.00%	$	—	$	—	$	—	$	—	$	—
2.00% to 3.99%	946		1,260		1,475		218		3,899
Greater than 3.99%	474		—		—		—		474
Total	$	1,420	$	1,260	$	1,475	$	218	$	4,373
December 31, 2025
Annuities (1):
Less than 2.00%	$	384	$	127	$	188	$	8,133	$	8,832
2.00% to 3.99%	6,155		497		518		327		7,497
Greater than 3.99%	740		—		—		—		740
Total	$	7,279	$	624	$	706	$	8,460	$	17,069
Life insurance (2) (3):
Less than 2.00%	$	—	$	—	$	—	$	413	$	413
2.00% to 3.99%	—		476		43		112		631
Greater than 3.99%	969		—		—		—		969
Total	$	969	$	476	$	43	$	525	$	2,013
ULSG (3):
Less than 2.00%	$	—	$	—	$	—	$	—	$	—
2.00% to 3.99%	965		1,279		1,496		222		3,962
Greater than 3.99%	484		—		—		—		484
Total	$	1,449	$	1,279	$	1,496	$	222	$	4,446

(1)Includes policyholder account balances for fixed rate annuities and the fixed account portion of variable annuities.

(2)Includes policyholder account balances for retained asset accounts, universal life policies and the fixed account portion of universal variable life insurance policies.

(3)Amounts are gross of policy loans.