Market Risk Benefits

6 Months Ended

Jun. 30, 2026

LIABILITY FOR FUTURE POLICY BENEFITS

Liability for Future Policy Benefits primarily consists of the following sub-components, which are discussed in greater detail below:

•Benefit Reserves;

•Deferred Profit Liability (“DPL”); and

•Additional Insurance Reserves (“AIR”)

In 2026, the Company recognized an unfavorable impact to net income attributable to its annual reviews and update of assumptions and other refinements for Liability for Future Policy Benefits. The impact was unfavorable for direct and assumed Benefit Reserves and DPL, net of the impact of flooring these liabilities at zero for each issue year cohort, primarily due to updates to mortality and morbidity assumptions in Long-Term Care and updates to mortality assumptions in Retirement. Additionally, there was a favorable impact for direct and assumed AIR, primarily due to impacts from updated economic assumptions, partially offset by impacts from updated policyholder behavior assumptions on universal life policies.

In 2025, the Company recognized a favorable impact to net income attributable to its annual reviews and update of assumptions and other refinements for Liability for Future Policy Benefits. The impact was favorable for direct and assumed Benefit Reserves and DPL, net of the impact of flooring these liabilities at zero for each issue year cohort, primarily due to updates to mortality assumptions in Individual Life Insurance, partially offset by unfavorable updates for morbidity in Long-Term Care and mortality in Retirement. Additionally, there was a favorable impact for direct and assumed AIR, primarily due to offsetting impacts from updated policyholder behavior assumptions and mortality assumptions on universal life policies.

Benefit Reserves

The balances of and changes in Benefit Reserves as of and for the periods indicated consist of the three tables presented below: Present Value of Expected Net Premiums rollforward, Present Value of Expected Future Policy Benefits rollforward, and Net Liability for Future Policy Benefits.


	Six Months Ended June 30, 2026
	Present Value of Expected Net Premiums
			Individual Life		International Businesses		Corporate and Other		Total
	Retirement		Term Life				Long-Term Care
	(in millions)
Balance, BOP	$	87,431	$	10,637	$	41,359	$	2,868	$	142,295
Effect of cumulative changes in discount rate assumptions, BOP	14,178		280		3,431		64		17,953
Balance at original discount rate, BOP	101,609		10,917		44,790		2,932		160,248
Effect of assumption update	19		(67)		(794)		260		(582)
Effect of actual variances from expected experience and other activity	143		(150)		(596)		58		(545)
Adjusted balance, BOP	101,771		10,700		43,400		3,250		159,121
Issuances	2,643		427		940		0		4,010
Net premiums / considerations collected	(4,891)		(676)		(3,174)		(163)		(8,904)
Interest accrual	1,856		260		686		73		2,875
Foreign currency adjustment	(1,516)		0		(530)		0		(2,046)
Other adjustments	0		(17)		74		0		57
Balance at original discount rate, EOP	99,863		10,694		41,396		3,160		155,113
Effect of cumulative changes in discount rate assumptions, EOP	(15,445)		(377)		(4,122)		(110)		(20,054)
Balance, EOP	$	84,418	$	10,317	$	37,274	$	3,050	135,059
Other businesses, EOP									113
Total balance, EOP									$	135,172


	Six Months Ended June 30, 2026
	Present Value of Expected Future Policy Benefits
			Individual Life		International Businesses		Corporate and Other		Total
	Retirement		Term Life				Long-Term Care
	(in millions)
Balance, BOP	$	167,704	$	19,166	$	125,543	$	11,660	$	324,073
Effect of cumulative changes in discount rate assumptions, BOP	17,769		602		26,267		1,435		46,073
Balance at original discount rate, BOP	185,473		19,768		151,810		13,095		370,146
Effect of assumption update	127		(67)		(595)		394		(141)
Effect of actual variances from expected experience and other activity	199		(203)		(579)		70		(513)
Adjusted balance, BOP	185,799		19,498		150,636		13,559		369,492
Issuances	2,643		427		940		0		4,010
Interest accrual	3,693		474		2,335		320		6,822
Benefit payments	(7,657)		(738)		(5,241)		(201)		(13,837)
Foreign currency adjustment	(1,524)		0		(2,202)		0		(3,726)
Other adjustments	84		(14)		212		0		282
Balance at original discount rate, EOP	183,038		19,647		146,680		13,678		363,043
Effect of cumulative changes in discount rate assumptions, EOP	(19,863)		(795)		(29,551)		(1,614)		(51,823)
Balance, EOP	$	163,175	$	18,852	$	117,129	$	12,064	311,220
Other businesses, EOP									1,472
Total balance, EOP									$	312,692


	Six Months Ended June 30, 2026
	Net Liability for Future Policy Benefits - Benefit Reserves
			Individual Life		International Businesses		Corporate and Other		Total
	Retirement		Term Life				Long-Term Care
	(in millions)
Balance, EOP, pre-flooring	$	78,757	$	8,535	$	79,855	$	9,013	$	176,160
Flooring impact, EOP	205		2		87		0		294
Balance, EOP, post-flooring	78,962		8,537		79,942		9,013		176,454
Less: Reinsurance recoverables	5,228		638		281		0		6,147
Balance after reinsurance recoverables, EOP, post-flooring	$	73,734	$	7,899	$	79,661	$	9,013	170,307
Other businesses, EOP(1)									1,307
Total balance after reinsurance recoverables, EOP									$	171,614


	Six Months Ended June 30, 2025
	Present Value of Expected Net Premiums
			Individual Life		International Businesses		Corporate and Other		Total(2)
	Retirement(2)		Term Life				Long-Term Care
	(in millions)
Balance, BOP	$	72,526	$	10,724	$	45,851	$	2,854	$	131,955
Effect of cumulative changes in discount rate assumptions, BOP	14,545		578		2,599		132		17,854
Balance at original discount rate, BOP	87,071		11,302		48,450		2,986		149,809
Effect of assumption update	169		(241)		(1,072)		8		(1,136)
Effect of actual variances from expected experience and other activity	(79)		(100)		(467)		41		(605)
Adjusted balance, BOP	87,161		10,961		46,911		3,035		148,068
Issuances	8,993		406		1,477		0		10,876
Net premiums / considerations collected	(3,447)		(692)		(3,455)		(155)		(7,749)
Interest accrual	1,745		264		730		71		2,810
Foreign currency adjustment	8,819		0		2,193		0		11,012
Other adjustments	0		3		73		0		76
Balance at original discount rate, EOP	103,271		10,942		47,929		2,951		165,093
Effect of cumulative changes in discount rate assumptions, EOP	(15,153)		(384)		(2,984)		(86)		(18,607)
Balance, EOP	$	88,118	$	10,558	$	44,945	$	2,865	146,486
Other businesses, EOP									109
Total balance, EOP									$	146,595


	Six Months Ended June 30, 2025
	Present Value of Expected Future Policy Benefits
			Individual Life		International Businesses		Corporate and Other		Total(2)
	Retirement(2)		Term Life				Long-Term Care
	(in millions)
Balance, BOP	$	151,679	$	18,996	$	135,485	$	11,178	$	317,338
Effect of cumulative changes in discount rate assumptions, BOP	20,199		1,134		17,834		1,548		40,715
Balance at original discount rate, BOP	171,878		20,130		153,319		12,726		358,053
Effect of assumption update	322		(392)		(1,013)		14		(1,069)
Effect of actual variances from expected experience and other activity	(120)		(137)		(563)		18		(802)
Adjusted balance, BOP	172,080		19,601		151,743		12,758		356,182
Issuances	8,993		406		1,477		0		10,876
Interest accrual	3,545		470		2,365		306		6,686
Benefit payments	(7,440)		(784)		(4,208)		(176)		(12,608)
Foreign currency adjustment	8,902		0		7,245		0		16,147
Other adjustments	29		(1)		171		0		199
Balance at original discount rate, EOP	186,109		19,692		158,793		12,888		377,482
Effect of cumulative changes in discount rate assumptions, EOP	(19,591)		(797)		(23,521)		(1,572)		(45,481)
Balance, EOP	$	166,518	$	18,895	$	135,272	$	11,316	332,001
Other businesses, EOP(1)									1,514
Total balance, EOP									$	333,515


	Six Months Ended June 30, 2025
	Net Liability for Future Policy Benefits - Benefit Reserves
			Individual Life		International Businesses		Corporate and Other		Total(2)
	Retirement(2)		Term Life				Long-Term Care
	(in millions)
Balance, EOP, pre-flooring	$	78,400	$	8,337	$	90,326	$	8,450	$	185,513
Flooring impact, EOP	106		0		80		0		186
Balance, EOP, post-flooring	78,506		8,337		90,406		8,450		185,699
Less: Reinsurance recoverables	5,038		576		341		0		5,955
Balance after reinsurance recoverables, EOP, post-flooring	$	73,468	$	7,761	$	90,065	$	8,450	179,744
Other businesses, EOP(1)									1,347
Total balance after reinsurance recoverables, EOP									$	181,091

__________

(1)Reflects balance after reinsurance recoverables of $53 million and $59 million at June 30, 2026 and 2025, respectively.

(2)Prior period amounts have been updated to conform to current period presentation.

The following tables provide supplemental information related to the balances of and changes in Benefit Reserves included in the disaggregated tables above, on a gross (direct and assumed) basis, as of and for the period indicated:


	Six Months Ended June 30, 2026

				Individual Life			International Businesses			Corporate and Other
	Retirement			Term Life						Long-Term Care
	($ in millions)
Undiscounted expected future gross premiums	$	172,541		$	22,836		$	95,546		$	6,366
Discounted expected future gross premiums (at original discount rate)	$	107,481		$	15,415		$	74,326		$	4,316
Discounted expected future gross premiums (at current discount rate)	$	90,584		$	14,928		$	67,213		$	4,174
Undiscounted expected future benefits and expenses	$	298,653		$	30,406		$	238,949		$	30,490
Weighted-average duration of the liability in years (at original discount rate)	8			9			16			16
Weighted-average duration of the liability in years (at current discount rate)	8			9			13			15
Weighted-average interest rate (at original discount rate)	4.84		%	5.10		%	3.09		%	4.91		%
Weighted-average interest rate (at current discount rate)	5.54		%	5.46		%	4.91		%	5.87		%


	Six Months Ended June 30, 2025

				Individual Life			International Businesses			Corporate and Other
	Retirement(1)			Term Life						Long-Term Care
	($ in millions)
Undiscounted expected future gross premiums	$	178,217		$	22,958		$	107,923		$	6,588
Discounted expected future gross premiums (at original discount rate)	$	111,292		$	15,586		$	84,598		$	4,427
Discounted expected future gross premiums (at current discount rate)	$	94,675		$	15,086		$	79,680		$	4,308
Undiscounted expected future benefits and expenses	$	302,651		$	30,430		$	260,920		$	29,531
Weighted-average duration of the liability in years (at original discount rate)	8			10			17			16
Weighted-average duration of the liability in years (at current discount rate)	8			9			14			15
Weighted-average interest rate (at original discount rate)	4.76		%	5.12		%	2.99		%	4.91		%
Weighted-average interest rate (at current discount rate)	5.45		%	5.37		%	4.05		%	5.87		%

__________

(1)Prior period amounts have been updated to conform to current period presentation.

For additional information regarding observable market information and the techniques used to determine the interest rate assumptions seen above, see Note 2 to the Consolidated Financial Statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2025.

For non-participating traditional and limited-payment products, if a cohort is in a loss position where the liability for future policy benefits plus the present value of expected future gross premiums are determined to be insufficient to provide for the present value of expected future policy benefits and non-level claim settlement expenses, then the liability for future policy benefits is adjusted at that time, and thereafter such that all changes, both favorable and unfavorable, in expected benefits resulting from both actual experience deviations and changes in future assumptions are recognized immediately as a gain or loss.

In the first six months of 2026, there was a $115 million charge to net income for non-participating traditional and limited-payment products, where net premiums exceeded gross premiums for certain issue-year cohorts, furthered by a $4 million charge reflecting the impact of ceded reinsurance. The unfavorable impact in the first six months of 2026 is primarily due to new business and annual update to assumptions and other refinements applicable to US Pension Risk Transfer, for which the Present Value of Expected Benefits at the required discount rate exceeds the premium paid.

For the first six months of 2025, there was an immaterial impact to net income for non-participating traditional and limited-payment products, where net premiums exceeded gross premiums for certain issue-year cohorts.

Deferred Profit Liability

The balances of and changes in DPL as of and for the period indicated are as follows:


	Six Months Ended June 30, 2026
	Deferred Profit Liability
			International Businesses		Total
	Retirement
	(in millions)
Balance, BOP, post-flooring	$	5,419	$	10,225	$	15,644
Less: Flooring impact, BOP	0		2		2
Balance, BOP, pre-flooring	5,419		10,223		15,642
Effect of assumption update	(18)		(255)		(273)
Effect of actual variances from expected experience and other activity	27		(39)		(12)
Adjusted balance, BOP	5,428		9,929		15,357
Profits deferred	28		1,220		1,248
Interest accrual	112		187		299
Amortization	(275)		(1,075)		(1,350)
Foreign currency adjustment	(4)		(70)		(74)
Other adjustments	0		33		33
Balance, EOP, pre-flooring	5,289		10,224		15,513
Flooring impact, EOP	0		2		2
Balance, EOP, post-flooring	5,289		10,226		15,515
Less: Reinsurance recoverables	414		42		456
Balance after reinsurance recoverables, EOP, post-flooring	$	4,875	$	10,184	15,059
Other businesses					146
Total balance after reinsurance recoverables, EOP					$	15,205


	Six Months Ended June 30, 2025
	Deferred Profit Liability
			International Businesses
	Retirement(1)				Total(1)
	(in millions)
Balance, BOP, post-flooring	$	5,683	$	9,354	$	15,037
Less: Flooring impact, BOP	0		2		2
Balance, BOP, pre-flooring	5,683		9,352		15,035
Effect of assumption update	(73)		(58)		(131)
Effect of actual variances from expected experience and other activity	30		2		32
Adjusted balance, BOP	5,640		9,296		14,936
Profits deferred	85		1,265		1,350
Interest accrual	116		172		288
Amortization	(289)		(1,055)		(1,344)
Foreign currency adjustment	26		353		379
Other adjustments	0		25		25
Balance, EOP, pre-flooring	5,578		10,056		15,634
Flooring impact, EOP	0		3		3
Balance, EOP, post-flooring	5,578		10,059		15,637
Less: Reinsurance recoverables	376		45		421
Balance after reinsurance recoverables, EOP, post-flooring	$	5,202	$	10,014	15,216
Other businesses					153
Total balance after reinsurance recoverables, EOP					$	15,369

_________

(1)Prior period amounts have been updated to conform to current period presentation.

Additional Insurance Reserves

AIR represents the additional liability for annuitization, death, or other insurance benefits, including guaranteed minimum death benefits (“GMDB”) and guaranteed minimum income benefits (“GMIB”) contract features, that are above and beyond the contractholder’s account balance for certain long-duration life contracts.

The following table shows a rollforward of AIR balances for guaranteed universal life products within the U.S. Legacy Products segment, which is the only line of business that contains a material AIR balance, for the periods indicated, along with a reconciliation to the Company’s total AIR balance:


	Six Months Ended June 30,
	2026		2025(1)
	(in millions)
Balance, including amounts in AOCI, BOP, post-flooring	$	17,904	$	16,205
Flooring impact and amounts in AOCI	315		460
Balance, excluding amounts in AOCI, BOP, pre-flooring	18,219		16,665
Effect of assumption update	(51)		81
Effect of actual variances from expected experience and other activity	(39)		(12)
Adjusted balance, BOP	18,129		16,734
Assessments collected(2)	621		486
Interest accrual	305		282
Benefits paid	(117)		(121)
Other adjustments	(6)		0
Balance, excluding amounts in AOCI, EOP, pre-flooring	18,932		17,381
Flooring impact and amounts in AOCI	(298)		(379)
Balance, including amounts in AOCI, EOP, post-flooring	18,634		17,002
Less: Reinsurance recoverables	11,020		9,963
Balance after reinsurance recoverables, including amounts in AOCI, EOP	7,614		7,039
Other businesses(3)	223		146
Total balance after reinsurance recoverables	$	7,837	$	7,185

__________

(1)Prior period amounts have been updated to conform to current period presentation.

(2)Represents the portion of gross assessments required to fund the future policy benefits.

(3)Reflects balance after reinsurance recoverables of $156 million and $134 million at June 30, 2026 and 2025, respectively.


	Six Months Ended June 30,
	2026		2025
Weighted-average duration of the liability in years (at original discount rate)	20		21
Weighted-average interest rate (at original discount rate)	3.33	%	3.41	%

Future Policy Benefits Reconciliation

The following table presents the reconciliation of the ending balances from above rollforwards, Benefit Reserves, DPL, and AIR including other liabilities, gross of related reinsurance recoverable, to the total liability for Future Policy Benefits on the Company’s Consolidated Statement of Financial Position as of the periods indicated:


	Six Months Ended June 30,
	2026		2025
	(in millions)
Benefit reserves, EOP, post-flooring	$	177,814	$	187,106
Deferred Profit Liability EOP, post-flooring	15,661		15,790
Additional insurance reserves, including amounts in AOCI, EOP, post-flooring	19,013		17,282
Subtotal of amounts disclosed above	212,488		220,178
Other Future Policy Benefits reserves(1)	48,456		49,955
Total Future Policy Benefits	$	260,944	$	270,133

__________

(1)Primarily represents balances for which disaggregated rollforward disclosures are not required, including Closed Block liabilities, unpaid claims and claims expenses, and incurred but not reported and in course of settlement claim liabilities.

Revenue and Interest Expense

The following tables present revenue and interest expense related to Benefit Reserves, DPL, and AIR in the Company’s Consolidated Statement of Operations as of the periods indicated:


	Six Months Ended June 30, 2026
	Revenues(1)
			Individual Life		U.S. Legacy Products		International Businesses		Other Businesses		Total
	Retirement		Term Life		Guaranteed Universal Life
	(in millions)
Benefit reserves	$	5,209	$	972	$	0	$	4,896	$	288	$	11,365
Deferred profit liability	127		0		0		(71)		8		64
Additional insurance reserves	96		0		869		102		682		1,749
Total	$	5,432	$	972	$	869	$	4,927	$	978	$	13,178


	Six Months Ended June 30, 2025
	Revenues(1)
			Individual Life		U.S. Legacy Products(2)		International Businesses		Other Businesses(2)		Total
	Retirement(2)		Term Life		Guaranteed Universal Life
	(in millions)
Benefit reserves	$	3,727	$	964	$	0	$	5,441	$	274	$	10,406
Deferred profit liability	132		0		0		(352)		(3)		(223)
Additional insurance reserves	34		0		687		0		635		1,356
Total	$	3,893	$	964	$	687	$	5,089	$	906	$	11,539


	Six Months Ended June 30, 2026
	Interest Expense
			Individual Life		U.S. Legacy Products		International Businesses		Other Businesses		Total
	Retirement		Term Life		Guaranteed Universal Life
	(in millions)
Benefit reserves	$	1,837	$	213	$	0	$	1,648	$	269	$	3,967
Deferred profit liability	112		0		0		187		2		301
Additional insurance reserves	3		0		305		1		6		315
Total	$	1,952	$	213	$	305	$	1,836	$	277	$	4,583


	Six Months Ended June 30, 2025
	Interest Expense
			Individual Life		U.S. Legacy Products(2)		International Businesses		Other Businesses(2)		Total
	Retirement(2)		Term Life		Guaranteed Universal Life
	(in millions)
Benefit reserves	$	1,800	$	205	$	0	$	1,635	$	255	$	3,895
Deferred profit liability	116		0		0		172		2		290
Additional insurance reserves	1		0		282		1		8		292
Total	$	1,917	$	205	$	282	$	1,808	$	265	$	4,477

__________

(1)Represents gross premiums for benefit reserves, gross premiums, excluding impact of foreign currency adjustments for DPL and gross assessments for AIR.

(2)Prior period amounts have been updated to conform to current period presentation.

POLICYHOLDERS’ ACCOUNT BALANCES

The balances of and changes in policyholders’ account balances as of and for the periods ended are as follows:


	Six Months Ended June 30, 2026
				Group Insurance			Individual Life			U.S. Legacy Products						International Businesses			Total
	Retirement			Life/Disability			Variable/Universal Life			Annuities			Guaranteed Universal Life
	($ in millions)
Balance, beginning of period	$	80,975		$	4,763		$	15,480		$	3,715		$	12,788		$	60,946		$	178,667
Deposits	11,179			446			728			65			649			3,859			16,926
Interest credited	1,044			65			200			136			188			1,359			2,992

Policy charges	(93)			(161)			(264)			(1)			(764)			(352)			(1,635)
Surrenders and withdrawals	(4,441)			(491)			(903)			(346)			(51)			(1,188)			(7,420)
Benefit payments	(416)			0			(21)			(66)			(63)			(1,234)			(1,800)
Net transfers (to) from separate account	(85)			4			458			14			0			0			391
Change in market value and other adjustments(1)	3,131			0			303			0			0			(17)			3,417
Foreign currency adjustment	(16)			0			0			0			0			(546)			(562)
Balance, end of period	$	91,278		$	4,626		$	15,981		$	3,517		$	12,747		$	62,827		190,976


Closed Block Division																			4,212
Unearned revenue reserve, unearned expense credit, and additional interest reserve																			7,141
Other(2)																			(106)
Total Policyholders’ account balance																			$	202,223
Weighted-average crediting rate	2.42		%	2.77		%	2.55		%	7.51		%	2.95		%	4.39		%	3.24		%
Net amount at risk(3)	$	0		$	75,147		$	275,980		$	0		$	147,794		$	28,945		$	527,866
Cash surrender value(4)	$	87,930		$	3,628		$	14,399		$	3,168		$	11,611		$	56,313		$	177,049


	Six Months Ended June 30, 2025
				Group Insurance			Individual Life(5)			U.S. Legacy Products(5)						International Businesses			Total
	Retirement(5)			Life/Disability			Variable/Universal Life			Annuities			Guaranteed Universal Life
	($ in millions)
Balance, beginning of period	$	60,869		$	4,974		$	14,902		$	4,324		$	12,694		$	54,270		$	152,033
Deposits	11,154			483			681			59			692			4,971			18,040
Interest credited	888			67			16			48			183			686			1,888

Policy charges	(62)			(168)			(257)			(1)			(767)			(296)			(1,551)
Surrenders and withdrawals	(3,500)			(842)			(874)			(366)			(59)			(672)			(6,313)
Benefit payments	(379)			0			(36)			(51)			(73)			(1,159)			(1,698)
Net transfers (to) from separate account	44			(13)			307			(3)			0			0			335
Change in market value and other adjustments(1)	977			0			495			0			0			(10)			1,462
Foreign currency adjustment	0			0			0			0			0			1,585			1,585
Balance, end of period	$	69,991		$	4,501		$	15,234		$	4,010		$	12,670		$	59,375		165,781


Closed Block Division																			4,293
Unearned revenue reserve, unearned expense credit, and additional interest reserve																			6,429
Other(2)																			4,428
Total Policyholders’ account balance																			$	180,931
Weighted-average crediting rate	2.71		%	2.81		%	0.22		%	2.34		%	2.89		%	2.42		%	2.38		%
Net amount at risk(3)	$	0		$	74,475		$	259,722		$	0		$	148,612		$	30,967		$	513,776
Cash surrender value(4)	$	67,199		$	3,668		$	12,627		$	3,676		$	11,426		$	52,544		$	151,140

__________

(1)Primarily relates to changes in the value of embedded derivative instruments associated with the indexed options of certain products.

(2)Includes $994 million and $5,004 million of the Full Service Retirement business’s account balances reinsured to Empower for June 30, 2026 and 2025, respectively.

(3)The net amount at risk calculation includes both general account and separate account balances.

(4)Cash surrender value represents the amount of the contractholder’s account balances distributable at the balance sheet date less certain surrender charges.

(5)Prior period amounts have been updated to conform to current period presentation.

“Policyholders’ account balances” for Retirement, International Businesses and Corporate and Other includes the Company’s Funding Agreement-Backed Notes (“FABN”) and Funding Agreement-Backed Commercial Paper (“FACP”) programs, which totaled $10,086 million and $7,801 million at June 30, 2026 and 2025, respectively. Under this program, which have maximum authorized amount of $15 billion of medium-term notes and $6 billion of commercial paper, Delaware statutory trusts issue short-term commercial paper and/or medium-term notes to investors that are secured by funding agreements issued to the trusts by The Prudential Insurance Company of America (“PICA”). The outstanding commercial paper and notes have fixed or floating interest rates that range from 0.0% to 5.6% and original maturities ranging from two months to ten years. Included in the amounts at June 30, 2026 and 2025 are funding agreements which secure the medium-term note liability, which are carried at amortized cost, of $6,650 million and $4,742 million, respectively, and short-term note liability of $2,836 million and $2,834 million, respectively, and Retail Note liability of $631 million and $257 million, respectively.

“Policyholders’ account balances” for Retirement also includes collateralized funding agreements issued to the Federal Home Loan Bank of New York (“FHLBNY”) totaling $2,628 million as of both June 30, 2026 and 2025. These obligations, which are carried at amortized cost, have fixed interest rates that range from 1.925% to 4.510% and original maturities of seven years.

The Company issues variable life and universal life insurance contracts which may also include a “no-lapse guarantee” where the Company contractually guarantees to the contractholder a death benefit even when the account value drops to zero, as long as the “no-lapse guarantee” premium is paid.

The net amount at risk is generally defined as the current death benefit in excess of the current account balance at the balance sheet date. The Company’s primary risk exposures for these contracts relates to actual deviations from, or changes to, the assumptions used in the original pricing of these products, including contractholder mortality, contract lapses, and premium pattern, as well as interest rate and equity market returns.

The Company also issues annuity contracts that provide certain death benefit and/or living benefit guarantees and are accounted for as MRBs. See Note 11 for additional information, including the net amount at risk associated with these guarantees.

The balance of account values by range of guaranteed minimum crediting rates and the related range of difference, in basis points (“bps”), between rates being credited to policyholders and the respective guaranteed minimums are as follows:


	June 30, 2026
Range of Guaranteed Minimum Crediting Rate(1)	At guaranteed minimum		1 - 50 bps above guaranteed minimum		51 - 150 bps above guaranteed minimum		Greater than 150 bps above guaranteed minimum		Total
	(in millions)
Retirement
Less than 1.00%	$	230	$	20	$	43	$	1,881	$	2,174
1.00% - 1.99%	1,870		34		137		46		2,087
2.00% - 2.99%	184		2,178		636		10		3,008
3.00% - 4.00%	6,182		5		11		2		6,200
Greater than 4.00%	7,359		0		0		0		7,359
Total	$	15,825	$	2,237	$	827	$	1,939	$	20,828
Group Insurance - Life / Disability
Less than 1.00%	$	0	$	0	$	0	$	877	$	877
1.00% - 1.99%	3		0		0		2		5
2.00% - 2.99%	38		0		0		0		38
3.00% - 4.00%	1,400		4		74		4		1,482
Greater than 4.00%	3		0		0		0		3
Total	$	1,444	$	4	$	74	$	883	$	2,405
Individual Life - Variable / Universal Life
Less than 1.00%	$	0	$	0	$	356	$	0	$	356
1.00% - 1.99%	521		264		0		414		1,199
2.00% - 2.99%	224		151		42		356		773
3.00% - 4.00%	2,057		319		1,001		254		3,631
Greater than 4.00%	4,765		0		0		0		4,765
Total	$	7,567	$	734	$	1,399	$	1,024	$	10,724
U.S. Legacy Products - Annuities
Less than 1.00%	$	15	$	60	$	606	$	0	$	681
1.00% - 1.99%	69		485		46		0		600
2.00% - 2.99%	443		31		8		0		482
3.00% - 4.00%	1,595		22		8		0		1,625
Greater than 4.00%	134		0		0		0		134
Total	$	2,256	$	598	$	668	$	0	$	3,522
U.S. Legacy Products - Guaranteed Universal Life
Less than 1.00%	$	0	$	0	$	0	$	0	$	0
1.00% - 1.99%	19		0		0		3,239		3,258
2.00% - 2.99%	27		0		4,036		291		4,354
3.00% - 4.00%	2,915		1,101		662		0		4,678
Greater than 4.00%	457		0		0		0		457
Total	$	3,418	$	1,101	$	4,698	$	3,530	$	12,747
International Businesses
Less than 1.00%	$	3,308	$	23	$	0	$	0	$	3,331
1.00% - 1.99%	13,613		117		0		0		13,730
2.00% - 2.99%	7,585		277		67		0		7,929
3.00% - 4.00%	10,652		0		0		0		10,652
Greater than 4.00%	21,009		0		0		0		21,009
Total	$	56,167	$	417	$	67	$	0	$	56,651


	June 30, 2025
Range of Guaranteed Minimum Crediting Rate(1)	At guaranteed minimum		1 - 50 bps above guaranteed minimum		51 - 150 bps above guaranteed minimum		Greater than 150 bps above guaranteed minimum		Total
	(in millions)
Retirement(2)
Less than 1.00%	$	640	$	4	$	18	$	1,118	$	1,780
1.00% - 1.99%	1,948		55		178		52		2,233
2.00% - 2.99%	174		449		550		15		1,188
3.00% - 4.00%	6,389		6		11		3		6,409
Greater than 4.00%	4,732		0		0		0		4,732
Total	$	13,883	$	514	$	757	$	1,188	$	16,342
Group Insurance - Life / Disability
Less than 1.00%	$	0	$	0	$	0	$	712	$	712
1.00% - 1.99%	0		0		0		2		2
2.00% - 2.99%	44		0		0		0		44
3.00% - 4.00%	1,442		6		51		7		1,506
Greater than 4.00%	3		0		0		0		3
Total	$	1,489	$	6	$	51	$	721	$	2,267
Individual Life - Variable / Universal Life(2)
Less than 1.00%	$	0	$	0	$	0	$	354	$	354
1.00% - 1.99%	325		0		340		348		1,013
2.00% - 2.99%	258		136		163		265		822
3.00% - 4.00%	2,414		314		1,140		45		3,913
Greater than 4.00%	4,830		0		0		0		4,830
Total	$	7,827	$	450	$	1,643	$	1,012	$	10,932
U.S. Legacy Products - Annuities(2)
Less than 1.00%	$	422	$	204	$	407	$	0	$	1,033
1.00% - 1.99%	136		387		38		0		561
2.00% - 2.99%	457		9		4		0		470
3.00% - 4.00%	1,842		24		9		0		1,875
Greater than 4.00%	155		0		0		0		155
Total	$	3,012	$	624	$	458	$	0	$	4,094
U.S. Legacy Products - Guaranteed Universal Life(2)
Less than 1.00%	$	0	$	0	$	0	$	0	$	0
1.00% - 1.99%	16		0		1,732		1,254		3,002
2.00% - 2.99%	26		1,429		2,574		167		4,196
3.00% - 4.00%	3,197		1,639		165		0		5,001
Greater than 4.00%	472		0		0		0		472
Total	$	3,711	$	3,068	$	4,471	$	1,421	$	12,671
International Businesses
Less than 1.00%	$	3,932	$	23	$	0	$	0	$	3,955
1.00% - 1.99%	16,450		32		0		0		16,482
2.00% - 2.99%	7,926		280		26		0		8,232
3.00% - 4.00%	8,743		0		0		0		8,743
Greater than 4.00%	16,833		0		0		0		16,833
Total	$	53,884	$	335	$	26	$	0	$	54,245

__________

(1)Excludes contracts without minimum guaranteed crediting rates, such as funds with indexed-linked crediting options and Japan variable products.

(2)Prior period amounts have been updated to conform to current period presentation.

Unearned Revenue Reserve (“URR”)

The balance of and changes in URR as of and for the periods ended are as follows:


	Six Months Ended June 30, 2026
	Individual Life		U.S. Legacy Products		International Businesses
	Variable/ Universal Life		Guaranteed Universal Life				Total
	(in millions)
Balance, beginning of period	$	3,809	$	2,047	$	666	$	6,522
Unearned revenue	302		123		80		505
Amortization expense	(95)		(42)		(18)		(155)

Foreign currency adjustment	0		0		(17)		(17)
Balance, end of period	$	4,016	$	2,128	$	711	6,855
Other							100
Total unearned revenue reserve balance							$	6,955


	Six Months Ended June 30, 2025
	Individual Life(1)		U.S. Legacy Products(1)		International Businesses
	Variable/ Universal Life		Guaranteed Universal Life				Total
	(in millions)
Balance, beginning of period	$	3,389	$	1,856	$	505	$	5,750
Unearned revenue	297		135		98		530
Amortization expense	(88)		(38)		(14)		(140)

Foreign currency adjustment	0		0		30		30
Balance, end of period	$	3,598	$	1,953	$	619	6,170
Other							64
Total unearned revenue reserve balance							$	6,234

__________

(1)Prior period amounts have been updated to conform to current period presentation.

MARKET RISK BENEFITS

The following tables show a rollforward for the lines of business that contain material MRB balances, along with a reconciliation to the Company’s total MRB balance:


	Six Months Ended June 30, 2026
			U.S. Legacy Products		Total
	Retirement		Annuities
	(in millions)
Balance, BOP	$	290	$	2,794	$	3,084
Effect of cumulative changes in NPR	(29)		506		477
Balance, BOP, before effect of changes in NPR	261		3,300		3,561
Attributed fees collected	53		449		502
Claims paid	(2)		(35)		(37)
Interest accrual	6		75		81
Actual in force different from expected	1		15		16
Effect of changes in interest rates	1		(74)		(73)
Effect of changes in equity markets	11		(598)		(587)
Effect of assumption update and other refinements	29		96		125
Issuances	77		6		83



Other adjustments	2		(1)		1
Balance, EOP, before effect of changes in NPR	439		3,233		3,672
Effect of cumulative changes in NPR	15		(508)		(493)
Balance, EOP	454		2,725		3,179
Less: Reinsured MRBs	0		885		885
Balance, EOP, net of reinsurance	$	454	$	1,840	2,294
Other businesses					7
Total net MRB balance					$	2,301


	Six Months Ended June 30, 2025(1)
			U.S. Legacy Products		Total
	Retirement		Annuities
	(in millions)
Balance, BOP	$	91	$	2,657	$	2,748
Effect of cumulative changes in NPR	(16)		689		673
Balance, BOP, before effect of changes in NPR	75		3,346		3,421
Attributed fees collected	31		500		531
Claims paid	(1)		(40)		(41)
Interest accrual	2		91		93
Actual in force different from expected	6		35		41
Effect of changes in interest rates	(30)		413		383
Effect of changes in equity markets	(12)		(485)		(497)
Effect of assumption update and other refinements	137		126		263
Issuances	46		6		52



Other adjustments	24		0		24
Balance, EOP, before effect of changes in NPR	278		3,992		4,270
Effect of cumulative changes in NPR	(14)		(832)		(846)
Balance, EOP	264		3,160		3,424
Less: Reinsured MRBs	0		777		777
Balance, EOP, net of reinsurance	$	264	$	2,383	2,647
Other businesses					24
Total net MRB balance					$	2,671

_________

(1)Prior period amounts have been updated to conform to current presentation.

In both 2026 and 2025, the Company recognized an unfavorable impact to net income attributable to the actuarial assumption update for direct and assumed MRBs, primarily due to updates to policyholder behavior assumptions.

The Company issues certain variable annuity insurance contracts where the Company contractually guarantees to the contractholder a return of no less than (1) total deposits made to the contract adjusted for any partial withdrawals plus a minimum return, and/or (2) the highest anniversary contract value on a specified date adjusted for any withdrawals. These guarantees include benefits that are payable in the event of death, annuitization or at specified dates during the accumulation period and withdrawal and income benefits payable during specified periods.

The Company also issues indexed annuity contracts for which the return is tied to the return of specific indices where the Company contractually guarantees to the contractholder a return of no less than total deposits made to the contract adjusted for any partial withdrawals upon death. In certain of these indexed annuity contracts, the Company also contractually guarantees to the contractholder withdrawal benefits payable during specific periods.

For guarantees of benefits that are payable in the event of death, the net amount at risk is generally defined as the current guaranteed minimum death benefit in excess of the current account balance at the balance sheet date. The Company’s primary risk exposures for these contracts relates to actual deviations from, or changes to, the assumptions used in the original pricing of these products, including fixed income and equity market returns, contract lapses and contractholder mortality.

For guarantees of benefits that are payable at annuitization, the net amount at risk is generally defined as the present value of the minimum guaranteed annuity payments available to the contractholder determined in accordance with the terms of the contract in excess of the current account balance. The Company’s primary risk exposures for these contracts relates to actual deviations from, or changes to, the assumptions used in the original pricing of these products, including fixed income and equity market returns, timing of annuitization, contract lapses and contractholder mortality.

For guarantees of benefits that are payable at withdrawal, the net amount at risk is generally defined as the present value of the minimum guaranteed withdrawal payments available to the contractholder determined in accordance with the terms of the contract in excess of the current account balance.

For guarantees of accumulation balances, the net amount at risk is generally defined as the guaranteed minimum accumulation balance minus the current account balance. The Company’s primary risk exposures for these contracts relates to actual deviations from, or changes to, the assumptions used in the original pricing of these products, including equity market returns, interest rates, market volatility and contractholder behavior.

The following tables present accompanying information to the rollforward tables above.


	June 30, 2026
			U.S. Legacy Products
	Retirement		Annuities
	($ in millions)
Net amount at risk(2)	$	752	$	7,913
Weighted-average attained age of contractholders	73		73


	June 30, 2025(1)
			U.S. Legacy Products
	Retirement		Annuities
	($ in millions)
Net amount at risk(2)	$	401	$	8,736
Weighted-average attained age of contractholders	69		71

__________

(1)Prior period amounts have been updated to conform to current period presentation.

(2)For contracts with multiple benefit features, the highest net amount at risk for each contract is included.

The tables below reconcile MRB asset and liability positions as of the following dates:


	June 30, 2026
			U.S. Legacy Products		Other Businesses		Total
	Retirement		Annuities
	(in millions)


MRB Assets	$	28	$	2,402	$	0	$	2,430



MRB Liabilities	482		4,242		7		4,731

Net Liability	$	454	$	1,840	$	7	$	2,301


	June 30, 2025(1)
			U.S. Legacy Products		Other Businesses		Total
	Retirement		Annuities
	(in millions)


MRB Assets	$	41	$	2,146	$	1	$	2,188



MRB Liabilities	305		4,529		25		4,859

Net Liability	$	264	$	2,383	$	24	$	2,671

_________

(1)Prior period amounts have been updated to conform to current presentation.