Future Policy Benefits

6 Months Ended

Jun. 30, 2026

12. Future Policy Benefits

Future policy benefits primarily include reserves for traditional life and annuity payout contracts, which represent an estimate of the

present value of future benefits less the present value of future net premiums. Included in Future policy benefits are liabilities for

annuities issued in structured settlement arrangements whereby a claimant receives life contingent payments over their lifetime. Also

included are pension risk transfer arrangements whereby an upfront premium is received in exchange for guaranteed retirement

benefits. All payments under these arrangements are fixed and determinable with respect to their amounts and dates. Structured

settlement or other annuitization elections (e.g., certain single premium immediate annuities) that do not involve life contingent

payments, but rather payments for a stated period are included in Policyholder contract deposits.

For traditional and limited pay long-duration products, benefit reserves are accrued and benefit expense is recognized using a net

premium ratio (“NPR”) methodology for each annual cohort of business.

The following tables present the balances and changes in the liability for future policy benefits and a reconciliation of the

net liability for future policy benefits to the liability for future policy benefits in the Condensed Consolidated Balance Sheets:


	Individual Retirement	Group Retirement	Life Insurance	Institutional Markets	Corporate and Other	Total
(in millions, except for liability durations)	Individual Retirement	Group Retirement	Life Insurance	Institutional Markets	Corporate and Other	Total
Six Months Ended June 30, 2026
Present value of expected net premiums
Balance, beginning of year	$—	$—	$8,365	$—	$825	$9,190
Effect of changes in discount rate assumptions (AOCI)	—	—	504	—	34	538
Beginning balance at original discount rate	—	—	8,869	—	859	9,728
Effect of actual variances from expected experience	—	—	(21)	—	(8)	(29)
Adjusted beginning of year balance	—	—	8,848	—	851	9,699
Issuances	—	—	367	—	13	380
Interest accrual	—	—	170	—	18	188
Net premium collected	—	—	(534)	—	(62)	(596)
Other	—	—	2	—	—	2
Ending balance at original discount rate	—	—	8,853	—	820	9,673
Effect of changes in discount rate assumptions (AOCI)	—	—	(598)	—	(45)	(643)
Balance, end of period	$—	$—	$8,255	$—	$775	$9,030


	Individual Retirement	Group Retirement	Life Insurance	Institutional Markets	Corporate and Other	Total
(in millions, except for liability durations)	Individual Retirement	Group Retirement	Life Insurance	Institutional Markets	Corporate and Other	Total
Six Months Ended June 30, 2026
Present value of expected future policy benefits
Balance, beginning of year	$1,173	$291	$17,209	$24,147	$18,772	$61,592
Effect of changes in discount rate assumptions (AOCI)	110	(5)	1,261	3,290	1,180	5,836
Beginning balance at original discount rate	1,283	286	18,470	27,437	19,952	67,428
Effect of actual variances from expected experience(a)	(14)	—	(22)	7	(19)	(48)
Adjusted beginning of year balance	1,269	286	18,448	27,444	19,933	67,380
Issuances	34	5	364	163	17	583
Interest accrual	25	7	391	595	471	1,489
Benefit payments	(59)	(19)	(779)	(852)	(751)	(2,460)
Foreign exchange impact	—	—	—	(167)	—	(167)
Other	—	—	3	—	—	3
Ending balance at original discount rate	1,269	279	18,427	27,183	19,670	66,828
Effect of changes in discount rate assumptions (AOCI)	(119)	1	(1,465)	(3,759)	(1,423)	(6,765)
Balance, end of period	$1,150	$280	$16,962	$23,424	$18,247	$60,063
Net liability for future policy benefits, end of period	1,150	280	8,707	23,424	17,472	51,033
Liability for future policy benefits for certain participating contracts	—	—	11	—	1,203	1,214
Liability for universal life policies(b)	—	—	4,287	—	53	4,340
Deferred profit liability	31	19	27	1,631	757	2,465
Other reconciling items(c)	13	—	369	—	107	489
Future policy benefits for life and accident and health insurance contracts	1,194	299	13,401	25,055	19,592	59,541
Less: Reinsurance recoverable:	(5)	—	(649)	(65)	(19,592)	(20,311)
Net liability for future policy benefits after reinsurance recoverable	$1,189	$299	$12,752	$24,990	$—	$39,230
Weighted average liability duration of the liability for future policy benefits (years)(d)	7.2	5.8	10.7	10.7	10.2


	Individual Retirement	Group Retirement	Life Insurance	Institutional Markets	Corporate and Other	Total
(in millions, except for liability durations)	Individual Retirement	Group Retirement	Life Insurance	Institutional Markets	Corporate and Other	Total
Six Months Ended June 30, 2025
Present value of expected net premiums
Balance, beginning of year	$—	$—	$8,287	$—	$871	$9,158
Effect of changes in discount rate assumptions (AOCI)	—	—	797	—	61	858
Reclassified due to reinsurance recapture	—	—	—	—	—	—
Beginning balance at original discount rate	—	—	9,084	—	932	10,016
Effect of actual variances from expected experience	—	—	(22)	—	4	(18)
Adjusted beginning of year balance	—	—	9,062	—	936	9,998
Issuances	—	—	328	—	—	328
Interest accrual	—	—	176	—	20	196
Net premium collected	—	—	(525)	—	(53)	(578)
Other	—	—	—	—	—	—
Ending balance at original discount rate	—	—	9,041	—	903	9,944
Effect of changes in discount rate assumptions (AOCI)	—	—	(633)	—	(45)	(678)
Balance, end of period	$—	$—	$8,408	$—	$858	$9,266


	Individual Retirement	Group Retirement	Life Insurance	Institutional Markets	Corporate and Other	Total
(in millions, except for liability durations)	Individual Retirement	Group Retirement	Life Insurance	Institutional Markets	Corporate and Other	Total
Six Months Ended June 30, 2025
Present value of expected future policy benefits
Balance, beginning of year	$1,130	$202	$16,947	$19,487	$19,243	$57,009
Effect of changes in discount rate assumptions (AOCI)	145	3	1,720	3,206	1,556	6,630
Reclassified due to reinsurance recapture	—	102	—	259	(361)	—
Beginning balance at original discount rate	1,275	307	18,667	22,952	20,438	63,639
Effect of actual variances from expected experience(a)	(7)	2	(29)	10	(7)	(31)
Adjusted beginning of year balance	1,268	309	18,638	22,962	20,431	63,608
Issuances	48	4	323	520	20	915
Interest accrual	25	8	401	481	483	1,398
Benefit payments	(58)	(23)	(742)	(709)	(745)	(2,277)
Foreign exchange impact	—	—	—	893	—	893
Other	(1)	(2)	—	—	(3)	(6)
Ending balance at original discount rate	1,282	296	18,620	24,147	20,186	64,531
Effect of changes in discount rate assumptions (AOCI)	(122)	3	(1,425)	(3,473)	(1,250)	(6,267)
Balance, end of period	$1,160	$299	$17,195	$20,674	$18,936	$58,264
Net liability for future policy benefits, end of year	1,160	299	8,787	20,674	18,078	48,998
Liability for future policy benefits for certain participating contracts	—	—	12	—	1,239	1,251
Liability for universal life policies(b)	—	—	4,108	—	53	4,161
Deferred profit liability	34	22	24	1,653	801	2,534
Other reconciling items(c)	15	—	419	—	107	541
Future policy benefits for life and accident and health insurance contracts	1,209	321	13,350	22,327	20,278	57,485
Less: Reinsurance recoverable:	(5)	—	(656)	(40)	(20,034)	(20,735)
Net liability for future policy benefits after reinsurance recoverable	$1,204	$321	$12,694	$22,287	$244	$36,750
Weighted average liability duration of the liability for future policy benefits (years)(d)	7.4	6.0	10.5	10.7	10.5

Effect of changes in cash flow assumptions and variances from actual experience are partially offset by changes in the deferred profit liability.

(b)Additional details can be found in the table that presents the balances and changes in the liability for universal life policies.

(c)Other reconciling items primarily include the Accident and Health as well as Group Benefits (short-duration) contracts.

(d)The weighted average liability durations are calculated as the modified duration using projected future net liability cashflows that are aggregated at the segment level,

utilizing the segment level weighted average interest rates and current discount rate, which can be found in the table below.

For the six months ended June 30, 2026 and 2025 in the traditional and term life insurance block, capping of net premium ratios at

100% caused a (credit)/charge to net income of $0 million and $1 million, respectively. The discount rate was updated based on

market observable information.

The following table presents the amount of undiscounted expected future benefit payments and undiscounted and

discounted expected gross premiums for future policy benefits for nonparticipating contracts:


		Six Months Ended June 30,
(in millions)		2026	2025
Individual Retirement	Undiscounted expected future benefits and expense	$1,849	$1,856
Individual Retirement	Undiscounted expected future gross premiums	$—	$—
Group Retirement	Undiscounted expected future benefits and expense	$396	$428
Group Retirement	Undiscounted expected future gross premiums	$—	$—
Life Insurance	Undiscounted expected future benefits and expense	$30,847	$30,285
	Undiscounted expected future gross premiums	$21,116	$20,762
	Discounted expected future gross premiums (at current discount rate)	$14,173	$13,911
Institutional Markets	Undiscounted expected future benefits and expense	$53,802	$43,970
Institutional Markets	Undiscounted expected future gross premiums	$—	$—
Corporate and other	Undiscounted expected future benefits and expense	$39,129	$40,512
	Undiscounted expected future gross premiums	$1,730	$1,896
	Discounted expected future gross premiums (at current discount rate)	$1,175	$1,287

The following table presents the amount of revenue and interest recognized in the Condensed Consolidated Statements of

Income (Loss) for future policy benefits for nonparticipating contracts:


	Gross Premiums		Interest Accretion
	Six Months Ended June 30,		Six Months Ended June 30,
(in millions)	2026	2025	2026	2025
Individual Retirement	$40	$47	$25	$25
Group Retirement	6	4	7	8
Life Insurance	935	926	221	225
Institutional Markets	173	542	595	481
Corporate and Other	108	118	453	463
Total	$1,262	$1,637	$1,301	$1,202

The following table presents the weighted-average interest rate for future policy benefits for nonparticipating contracts:


	Individual Retirement	Group Retirement	Life Insurance	Institutional Markets	Corporate and Other
	Individual Retirement	Group Retirement	Life Insurance	Institutional Markets	Corporate and Other
June 30, 2026
Weighted-average interest rate, original discount rate	4.01%	5.17%	4.77%	4.59%	4.90%
Weighted-average interest rate, current discount rate	5.43%	5.28%	5.64%	5.90%	5.62%
June 30, 2025
Weighted-average interest rate, original discount rate	3.88%	5.29%	4.70%	4.31%	4.77%
Weighted-average interest rate, current discount rate	5.31%	5.15%	5.51%	5.66%	5.49%

The weighted average interest rates are calculated using projected future net liability cash flows that are aggregated to the segment

level, and are represented as an annual rate.

Additional Liabilities: For universal-life type products, insurance benefits in excess of the account balance are generally recognized

as expenses in the period incurred unless the design of the product is such that future charges are insufficient to cover the benefits, in

which case an “additional liability” is accrued over the life of the contract. These additional liabilities are included in Future policy

benefits for life and accident and health insurance contracts in the Condensed Consolidated Balance Sheets.

The following table presents the balances and changes in the liability for universal life policies:


	Six Months Ended June 30,
	2026			2025
	Life Insurance	Corporate and Other	Total	Life Insurance	Corporate and Other	Total
(in millions, except duration of liability)	Life Insurance	Corporate and Other	Total	Life Insurance	Corporate and Other	Total
Balance, beginning of year	$4,241	$54	$4,295	$4,034	$54	$4,088
Effect of changes in experience	183	(2)	181	217	(2)	215
Adjusted beginning balance	$4,424	$52	$4,476	$4,251	$52	$4,303
Assessments	318	—	318	327	—	327
Excess benefits paid	(509)	—	(509)	(581)	—	(581)
Interest accrual	84	1	85	79	1	80
Other	(4)	—	(4)	(1)	—	(1)
Changes related to unrealized appreciation (depreciation) of investments	(26)	—	(26)	33	—	33
Balance, end of period	$4,287	$53	$4,340	$4,108	$53	$4,161
Less: Reinsurance recoverable	(170)	(53)	(223)	(151)	(53)	(204)
Balance, end of period, net of Reinsurance recoverable	$4,117	$—	$4,117	$3,957	$—	$3,957
Weighted average duration of liability *	25.9	8.5		25.1	8.8

*The weighted average duration of liabilities is calculated as the modified duration using projected future net liability cashflows that are aggregated at the segment

level, utilizing the segment level weighted average interest rates, which can be found in the table below.

The following table presents the amount of revenue and interest recognized in the Condensed Consolidated Statements of

Income (Loss) for the liability for universal life policies:


	Gross Assessments		Interest Accretion
	Six Months Ended June 30,		Six Months Ended June 30,
(in millions)	2026	2025	2026	2025
Life Insurance	$511	$562	$84	$79
Corporate and Other	19	18	1	1
Total	$530	$580	$85	$80

The following table presents the calculation of weighted average interest rate for the liability for universal life policies:


June 30,	2026		2025
	Life Insurance	Corporate and Other	Life Insurance	Corporate and Other
	Life Insurance	Corporate and Other	Life Insurance	Corporate and Other
Weighted-average interest rate	3.96%	4.20%	4.03%	4.20%

The weighted average interest rates are calculated using projected future net liability cash flows that are aggregated to the segment

level, and are represented as an annual rate.

The following table presents details concerning our universal life policies:


	Six Months Ended June 30,
(in millions, except for attained age of contract holders)	2026	2025
Account value	$4,414	$4,089
Net amount at risk	$79,318	$77,186
Average attained age of contract holders	54	54