v3.26.1
Insurance
 6 Months Ended
Jun. 30, 2026
Insurance [Abstract]  
Insurance
8. Insurance

Changes in the reserve for unpaid claims and loss adjustment expenses (net of reinsurance recoverables) on our short-duration insurance contracts were as follows:
At or for the
Six Months Ended June 30,
(dollars in millions)20262025
Balance at beginning of period$98 $102 
Less reinsurance recoverables(3)(3)
Net balance at beginning of period95 99 
Additions for losses and loss adjustment expenses incurred to:
Current year103 100 
Prior years *
(3)(7)
Total100 93 
Reductions for losses and loss adjustment expenses paid related to:
Current year(53)(39)
Prior years(48)(59)
Total(101)(98)
Foreign currency translation adjustment— 1 
Net balance at end of period94 95 
Plus reinsurance recoverables3 3 
Balance at end of period$97 $98 
*    At June 30, 2026, there were redundancies in the prior years’ net reserves due to favorable development of credit life claims during the period. At June 30, 2025, there were redundancies in the prior years’ net reserves due to favorable development of credit disability claims during the period.

LIABILITY FOR FUTURE POLICY BENEFITS

The present values of expected net premiums on long-duration insurance contracts were as follows:
At or for the
Six Months Ended June 30,
20262025
(dollars in millions)Term and
 Whole Life		Accidental Death and Disability ProtectionTerm and
 Whole Life		Accidental Death and Disability Protection
Balance at beginning of period$138 $28 $177 $33 
Effect of cumulative changes in discount rate assumptions (beginning of period)(3)— (2)— 
Beginning balance at original discount rate135 28 175 33 
Effect of changes in cash flow assumptions22 — — — 
Effect of actual variances from expected experience(9)(4)(5)2 
Adjusted balance at beginning of period148 24 170 35 
Interest accretion4 1 4 1 
Net premiums collected(10)(2)(12)(2)
Ending balance at original discount rate142 23 162 34 
Effect of changes in discount rate assumptions1 — 1 (1)
Balance at ending of period$143 $23 $163 $33 
The present values of expected future policy benefits on long-duration insurance contracts were as follows:
At or for the
Six Months Ended June 30,
20262025
(dollars in millions)Term and
Whole Life		Accidental Death and Disability ProtectionTerm and
Whole Life		Accidental Death and Disability Protection
Balance at beginning of period$329 $90 $378 $96 
Effect of cumulative changes in discount rate assumptions (beginning of period)(9)1(5)2
Beginning balance at original discount rate3209137398
Effect of changes in cash flow assumptions10———
Effect of actual variances from expected experience(7)(6)(5)4
Adjusted balance at beginning of period32385368102
Net issuances2121
Interest accretion92102
Benefit payments(21)(5)(24)(6)
Ending balance at original discount rate3138335699
Effect of changes in discount rate assumptions4(2)3(3)
Balance at ending of period$317 $81 $359 $96 

The net liabilities for future policy benefits on long-duration insurance contracts were as follows:
At or for the
Six Months Ended June 30,
20262025
(dollars in millions)Term and
Whole Life		Accidental Death and Disability ProtectionTerm and
Whole Life		Accidental Death and Disability Protection
Net liability for future policy benefits$174 $58 $196 $63 
Deferred profit liability11431147
Total net liability for future policy benefits$185 $101 $207 $110 

The weighted-average duration of the liability for future policy benefits was 7 years at June 30, 2026 and 8 years at June 30, 2025.

The following table reconciles the net liability for future policy benefits to Insurance claims and policyholder liabilities in the condensed consolidated balance sheets:
At or for the
Six Months Ended June 30,
(dollars in millions)20262025
Term and whole life$185 $207 
Accidental death and disability protection101 110 
Other*266 262 
Total insurance claims and policyholder liabilities
$552 $579 
*    Other primarily includes reserves for short-duration contracts that are payable to third-party beneficiaries.
The undiscounted and discounted expected future gross premiums and expected future benefits and expenses for our long-duration insurance contracts were as follows:
At or for the
Six Months Ended June 30,
20262025
(dollars in millions)Term and
Whole Life		Accidental Death and Disability ProtectionTerm and
Whole Life		Accidental Death and Disability Protection
Expected future gross premiums:
Undiscounted$326 $92 $340 $116 
Discounted236 66 246 82 
Expected future benefit payments:
Undiscounted432 119 502 144 
Discounted317 81 359 96 

The revenue and interest accretion related to our long-duration insurance contracts recognized in the condensed consolidated statements of operations were as follows:
At or for the
Six Months Ended June 30,
20262025
(dollars in millions)Term and
Whole Life		Accidental Death and Disability ProtectionTerm and
Whole Life		Accidental Death and Disability Protection
Gross premiums or assessments$22 $7 $24 $8 
Interest accretion$5 $1 $5 $2 

The expected and actual experiences for mortality, morbidity, and lapses of the liability for future policy benefits were as follows:
At or for the
Six Months Ended June 30,
20262025
Term and
Whole Life		Accidental Death and Disability ProtectionTerm and
Whole Life		Accidental Death and Disability Protection
Mortality/Morbidity:
Expected0.40 %0.01 %0.39 %0.01 %
Actual0.34 %0.01 %0.41 %0.01 %
Lapses:
Expected3.85 %1.61 %3.60 %1.72 %
Actual4.10 %3.51 %2.81 %2.11 %

The weighted-average interest rates for the liability of future policy benefits for our long-duration insurance contracts were as follows:
At or for the
Six Months Ended June 30,
20262025
Term and
Whole Life		Accidental Death and Disability ProtectionTerm and
Whole Life		Accidental Death and Disability Protection
Interest accretion rate5.28 %4.85 %5.29 %4.86 %
Current discount rate5.38 %5.49 %5.51 %5.61 %