Future Contract Benefits

6 Months Ended

Jun. 30, 2026

Liability for Future Policy Benefits and Unpaid Claims and Claims Adjustment Expense [Abstract]

The following table reconciles future contract benefits (in millions) to the Consolidated Balance Sheets:


	As of June 30,		As of December 31,
	2026		2025
Payout Annuities (1)	$	1,991	$	2,037
Traditional Life (1)	3,704		3,755
Group Protection (2)	5,781		5,836
UL and Other (3)	18,686		17,948
Other Operations (4)	8,843		9,179
Other (5)	3,172		3,322
Total future contract benefits	$	42,177	$	42,077

(1) See “LFPB” below for further information.

(2) See “Liability for Future Claims” below for further information.

(3) See “Additional Liabilities for Other Insurance Benefits” below for further information.

(4) Represents future contract benefits reported in Other Operations primarily attributable to the indemnity reinsurance agreements with Protective ($5.2 billion and $5.4 billion as of June 30, 2026, and December 31, 2025, respectively) and Swiss Re ($2.0 billion as of June 30, 2026, and December 31, 2025) that are excluded from the following tables.

(5) Represents other miscellaneous reserves that are not representative of long-duration contracts, primarily related to participating traditional life insurance contracts and incurred but not reported and in course of settlement life insurance liabilities, and are excluded from the following tables.

LFPB

The liability for future policy benefits (“LFPB”) represents reserves associated with our limited payment life-contingent annuities and non-participating traditional life insurance contracts (i.e., term insurance). The reserve is the net of present value of expected future policy benefits less present value of expected net premiums as summarized in the following table (in millions, except years):


	As of or For the Six Months Ended June 30, 2026				As of or For the Six Months Ended June 30, 2025
	Payout Annuities		Traditional Life		Payout Annuities		Traditional Life

Present Value of Expected Net Premiums
Balance as of beginning-of-year	$	–	$	5,351	$	–	$	5,873
Less: Effect of cumulative changes in discount
rate assumptions	–		(90)		–		(275)
Beginning balance at original discount rate	–		5,441		–		6,148

Effect of actual variances from expected experience (1)	–		(18)		–		(62)

Adjusted balance as of beginning-of-year	–		5,423		–		6,086
Issuances	–		140		–		141
Interest accrual	–		112		–		124
Net premiums collected	–		(355)		–		(384)
Flooring impact of LFPB	–		(19)		–		(7)
Ending balance at original discount rate	–		5,301		–		5,960
Effect of cumulative changes in discount
rate assumptions	–		(174)		–		(154)
Balance as of end-of-period	$	–	$	5,127	$	–	$	5,806

Present Value of Expected Future Policy Benefits
Balance as of beginning-of-year	$	2,037	$	9,106	$	2,009	$	9,647
Less: Effect of cumulative changes in discount
rate assumptions	(182)		(144)		(251)		(438)
Beginning balance at original discount rate (2)	2,219		9,250		2,260		10,085

Effect of actual variances from expected experience (1)	(3)		(46)		(6)		(82)
Adjusted balance as of beginning-of-year	2,216		9,204		2,254		10,003
Issuances	51		140		46		141
Interest accrual	44		184		44		199
Benefit payments	(106)		(406)		(97)		(430)
Ending balance at original discount rate (2)	2,205		9,122		2,247		9,913
Effect of cumulative changes in discount
rate assumptions	(214)		(291)		(208)		(240)
Balance as of end-of-period	$	1,991	$	8,831	$	2,039	$	9,673

Net balance as of end-of-period	$	1,991	$	3,704	$	2,039	$	3,867
Less: Reinsurance recoverables	1,368		246		1,467		345
Net balance as of end-of-period, net of reinsurance	$	623	$	3,458	$	572	$	3,522

Weighted-average duration of future policyholder
benefit liability (years)	8		8		9		8

(1) For the six months ended June 30, 2026, the Traditional Life actual to expected reserve impact on expected net premiums did not have any significantly different actual experience compared to expected attributable to either mortality or policyholder behavior; and the actual to expected reserve impact on expected future policy benefits was attributable primarily to mortality and policyholder behavior, which favorably impacted the liability by $36 million and $10 million, respectively. For the six months ended June 30, 2025, the Traditional Life actual to expected reserve impact on expected net premiums was attributable primarily to policyholder behavior and mortality, which unfavorably impacted the liability by $43 million and $19 million, respectively; and the actual to expected reserve impact on expected future policy benefits was attributable primarily to policyholder behavior and mortality, which favorably impacted the liability by $57 million and $25 million, respectively. For the six months ended June 30, 2026 and 2025, Payout Annuities did not have any significantly different actual experience compared to expected.

(2) Includes deferred profit liability within Payout Annuities of $101 million, $92 million, $70 million and $62 million as of June 30, 2026, December 31, 2025, June 30, 2025 and December 31, 2024, respectively.

The following table summarizes the discounted and undiscounted expected future gross premiums and expected future benefit payments (in millions):


	As of June 30, 2026				As of June 30, 2025
	Undiscounted		Discounted		Undiscounted		Discounted
Payout Annuities
Expected future gross premiums	$	–	$	–	$	–	$	–
Expected future benefit payments	3,221		1,991		3,385		2,039
Traditional Life
Expected future gross premiums	12,831		8,815		13,683		9,422
Expected future benefit payments	12,787		8,831		14,050		9,673

The following table summarizes the gross premiums and interest accretion (in millions) recognized in insurance premiums and benefits, respectively, on the Consolidated Statements of Comprehensive Income (Loss):


	For the Three Months Ended June 30,				For the Six Months Ended June 30,
	2026		2025		2026		2025
Payout Annuities
Gross premiums	$	34	$	25	$	51	$	48
Interest accretion	22		22		44		44
Traditional Life
Gross premiums	375		312		678		626
Interest accretion	36		38		72		75

The following table summarizes the weighted-average interest rates:


	For the Six Months Ended June 30,
	2026		2025
Payout Annuities
Interest accretion rate	4.0	%	4.0	%
Current discount rate	5.3	%	5.2	%
Traditional Life
Interest accretion rate	5.0	%	5.0	%
Current discount rate	5.0	%	4.8	%

Liability for Future Claims

The liability for future claims represents reserves associated with our group long-term disability and life waiver products. The following table summarizes the balances of and changes in liability for future claims (in millions, except years):


	Group Protection
	As of or For the Six Months Ended June 30,
	2026		2025
Balance as of beginning-of-year	$	5,836	$	5,628
Less: Effect of cumulative changes in discount
rate assumptions	(363)		(550)
Beginning balance at original discount rate	6,199		6,178

Effect of actual variances from expected experience (1)	(111)		(178)
Adjusted beginning-of-year balance	6,088		6,000
New incidence	753		808
Interest	108		100
Benefit payments	(748)		(724)
Ending balance at original discount rate	6,201		6,184
Effect of cumulative changes in discount
rate assumptions	(420)		(425)
Balance as of end-of-period	5,781		5,759
Less: Reinsurance recoverables	121		122
Balance as of end-of-period, net of reinsurance	$	5,660	$	5,637

Weighted-average duration of liability for future
claims (years)	5		5

(1) Generally, the experience exhibited for the Group Protection business relates to morbidity and, to a lesser extent, mortality. Group Protection long-duration products have limited exposure to lapse risk, as the liabilities for future claims are limited to those associated with claim reserves. For the six months ended June 30, 2026 and 2025, morbidity comprised substantially all of the favorable effect of actual variances from expected experience, as our claims experience was more favorable than assumed.

The following table summarizes the discounted and undiscounted expected future benefit payments (in millions):


	As of June 30, 2026				As of June 30, 2025
	Undiscounted		Discounted		Undiscounted		Discounted
Group Protection
Expected future benefit payments	$	7,557	$	5,781	$	7,447	$	5,759


	For the Three Months Ended June 30,				For the Six Months Ended June 30,
	2026		2025		2026		2025
Group Protection
Gross premiums	$	909	$	926	$	1,823	$	1,859
Interest accretion	53		50		108		100

The following table summarizes the weighted-average interest rates:


	For the Six Months Ended June 30,
	2026		2025
Group Protection
Interest accretion rate	3.7	%	3.4	%
Current discount rate	5.1	%	4.8	%

Additional Liabilities for Other Insurance Benefits

Additional liabilities for other insurance benefits represent reserves associated with our UL and VUL contracts with secondary guarantees, including MoneyGuard®. The following table summarizes the balances of and changes in additional liabilities for other insurance benefits (in millions, except years):


	UL and Other
	As of or For the Six Months Ended June 30,
	2026		2025
Balance as of beginning-of-year	$	17,948	$	16,062
Less: Effect of cumulative changes in shadow
balance in AOCI	(2,191)		(2,673)
Balance as of beginning-of-year, excluding
shadow balance in AOCI	20,139		18,735

Effect of actual variances from expected experience (1)(2)	107		117
Adjusted beginning-of-year balance	20,246		18,852
Interest accrual	499		461
Net assessments collected	567		616
Benefit payments	(608)		(532)
Balance as of end-of-period, excluding shadow
balance in AOCI	20,704		19,397
Effect of cumulative changes in shadow
balance in AOCI	(2,018)		(2,408)
Balance as of end-of-period	18,686		16,989
Less: Reinsurance recoverables	5,652		5,385
Balance as of end-of-period, net of reinsurance	$	13,034	$	11,604

Weighted-average duration of additional liabilities
for other insurance benefits (years)	16		16

(1) For the six months ended June 30, 2026 and 2025, the actual to expected reserve impact was attributable primarily to mortality, which unfavorably impacted the liability by $107 million and $116 million, respectively.

(2) For the six months ended June 30, 2026 and 2025, the effect of actual variances from expected experience, net of reinsurance, was $41 million and $35 million, respectively.

The following table summarizes the gross assessments and interest accretion (in millions) recognized in insurance premiums and benefits, respectively, on the Consolidated Statements of Comprehensive Income (Loss):


	For the Three Months Ended June 30,				For the Six Months Ended June 30,
	2026		2025		2026		2025
UL and Other
Gross assessments	$	564	$	787	$	1,345	$	1,487
Interest accretion	251		233		499		461

The following table summarizes the weighted-average interest rates:


	For the Six Months Ended June 30,
	2026		2025
UL and Other
Interest accretion rate	5.4	%	5.4	%