v3.26.1
LIABILITIES FOR FUTURE POLICYHOLDER BENEFITS
 6 Months Ended
Jun. 30, 2026
Insurance [Abstract]  
LIABILITIES FOR FUTURE POLICYHOLDER BENEFITS DAC AND OTHER DEFERRED ASSETS/LIABILITIES
The following table presents a reconciliation of DAC to the consolidated balance sheets:
June 30, 2026December 31, 2025
(in millions)
Retirement
GMxB Core
$1,569 $1,587 
EQUI-VEST Individual
152 153 
Investment Edge301 273 
SCS2,413 2,274 
EQUI-VEST Group
795 789 
Momentum76 79 
Corporate and Other
Term265 288 
Universal Life
164 167 
Variable Universal Life
1,161 1,143 
Indexed Universal Life
177 181 
GMxB Legacy
452 472 
Closed Block
94 98 
Other
19 19 
Total$7,638 $7,523 
Annually, or as circumstances warrant, the Company reviews the associated decrements assumptions (i.e., mortality and lapse) based on our multi-year average of companies experience with actuarial judgments to reflect other observable industry trends. In addition to DAC, the unearned revenue liability and sales inducement asset use similar techniques and quarterly update processes for balance amortization.
Changes in the DAC asset were as follows:
Six Months Ended June 30, 2026
Retirement
Corporate and OtherTotal
GMxB CoreEI IE SCSEG MomentumTermULVUL IUL GMxB LegacyCB
(in millions)
Balance, beginning of period$1,587 $153 $273 $2,274 $789 $79 $288 $167 $1,143 $181 $472 $98 $7,504 
Capitalization 63 5 41 373 30 5 2 6 57 3 9 — 594 
Amortization (1)(81)(6)(13)(192)(24)(8)(17)(6)(35)(6)(29)(4)(421)
Recovery of acquisition costs (2)— — — (42)— — (8)(3)(4)(1)— — (58)
Balance, end of period$1,569 $152 $301 $2,413 $795 $76 $265 $164 $1,161 $177 $452 $94 $7,619 
______________
(1)DAC amortization of $2 million related to Other not reflected in table above.
(2)Related to third party reinsurance transactions.

Six Months Ended June 30, 2025
Retirement
Corporate and OtherTotal
GMxB CoreEI IE SCSEG MomentumTermULVUL IUL GMxB Legacy
CB
(in millions)
Balance, beginning of period$1,605 $154 $225 $1,938 $768 $83 $314 $170 $1,083 $186 $517 $107 $7,150 
Capitalization70 5 36 326 31 5 5 7 72 6 9 — 572 
Amortization (1)
(76)(5)(11)(157)(23)(8)(18)(6)(33)(6)(32)(4)(379)
Balance, end of period$1,599 $154 $250 $2,107 $776 $80 $301 $171 $1,122 $186 $494 $103 $7,343 
______________
(1)DAC amortization of $2 million related to Other not reflected in table above.
Changes in the Retirement and Corporate and Other sales inducement assets were as follows:
Six Months Ended June 30,
20262025
Retirement
Corporate and OtherRetirementCorporate and Other
GMxB CoreGMxB LegacyGMxB CoreGMxB Legacy
(in millions)
Balance, beginning of period$107 $141 $117 $160 
Capitalization1 — 1 — 
Amortization(6)(9)(6)(9)
Balance, end of period$102 $132 $112 $151 
Changes in the Corporate and Other unearned revenue liability were as follows:
Six Months Ended June 30,
20262025
ULVULIULULVULIUL
(in millions)
Balance, beginning of period$112 $866 $254 $114 $840 $250 
Capitalization5 77 19 7 74 23 
Amortization(4)(29)(9)(4)(27)(8)
Recovery of unearned revenue reserves (1)
(3)(41)(13)— — — 
Balance, end of period$110 $873 $251 $117 $887 $265 
______________
(1)    Related to third party reinsurance transactions.
LIABILITIES FOR FUTURE POLICYHOLDER BENEFITSThe following table reconciles the net liability for future policy benefits and liability of death benefits to the liability for future policy benefits in the consolidated balance sheets:
June 30, 2026December 31, 2025
(in millions)
Reconciliation
Term$1,202 $1,241 
Payout
5,345 5,243 
Group Pension - Benefit Reserve & DPL407 432 
Health1,252 1,316 
UL1,355 1,328 
Subtotal9,561 9,560 
  Whole Life Closed Block and Open Block products4,839 4,980 
Other (1)928 936 
Future policyholder benefits total15,328 15,476 
  Other policyholder funds and dividends payable2,044 2,184 
Total$17,372 $17,660 
_____________
(1)Primarily consists of future policy benefits related to Protective Life and Annuity, Assumed Life and Disability, Group Life Run off, Variable Interest Sensitive Life rider and EB.
The following table summarizes balances and changes in the liability for future policy benefits for nonparticipating traditional and limited pay contracts:
Six Months Ended June 30, 2026Six Months Ended June 30, 2025
Retirement
Corporate & Other
Retirement
Corporate & Other
PayoutTermGroup PensionHealthPayoutTermGroup PensionHealth
(in millions)
Present Value of Expected Net Premiums
Balance, beginning of period$— $1,818 $— $(23)$— $1,932 $— $(25)
Beginning balance at original discount rate— 1,802 — (24)— 1,959 — (26)
Effect of changes in cash flow assumptions— (3)— — — — — — 
Effect of actual variances from expected experience— (51)— (1)— (54)— (2)
Adjusted beginning of period balance— 1,748 — (25)— 1,905 — (28)
Issuances— 15 — — — 20 — — 
Interest accrual— 43 — — — 47 — (1)
Net premiums collected— (81)— 2 — (90)— 3 
Ending Balance at original discount rate— 1,725 — (23)— 1,882 — (26)
Effect of changes in discount rate assumptions— (15)— 1 — — — 1 
Balance, end of period$— $1,710 $— $(22)$— $1,882 $— $(25)
Present Value of Expected Future Policy Benefits
Balance, beginning of period$5,243 $3,058 $432 $1,293 $5,050 $3,216 $460 $1,337 
Beginning balance of original discount rate5,402 2,991 472 1,458 5,390 3,215 514 1,555 
Effect of changes in cash flow assumptions (1)
(15)7 — — (468)— — — 
Effect of actual variances from expected experience(3)(74)— (1)(3)(73)— (7)
Adjusted beginning of period balance5,384 2,924 472 1,457 4,919 3,142 514 1,548 
Issuances365 16 — — 398 22 — — 
Interest accrual105 73 8 24 99 79 9 25 
Benefits payments(286)(116)(28)(71)(251)(120)(31)(75)
Ending Balance at original discount rate5,568 2,897 452 1,410 5,165 3,123 492 1,498 
Effect of changes in discount rate assumptions(223)14 (45)(180)(229)45 (45)(187)
Balance, end of period$5,345 $2,911 $407 $1,230 $4,936 $3,168 $447 $1,311 
Impact of flooring LFPB at zero— 1 — — — 1 — — 
Net liability for future policy benefits5,345 1,202 407 1,252 4,936 1,287 447 1,336 
Less: Reinsurance recoverable(1,261)(889)— (972)(1,027)2 — (1,044)
Net liability for future policy benefits, after reinsurance recoverable$4,084 $313 $407 $280 $3,909 $1,289 $447 $292 
Weighted-average duration of liability for future policyholder benefits (years)7.46.96.88.07.66.86.98.3
______________
(1)Includes the net income impact due to novation as described in Note 1.
The following table provides the amount of undiscounted and discounted expected gross premiums and expected future benefits and expenses related to nonparticipating traditional and limited payment contracts:
June 30, 2026December 31, 2025
(in millions)
Term
Expected future benefit payments and expenses (undiscounted)$5,037 $5,214 
Expected future gross premiums (undiscounted)
6,070 6,250 
Expected future benefit payments and expenses (discounted; AOCI basis)2,904 3,058 
Expected future gross premiums (discounted; AOCI basis)3,279 3,424 
Payout
Expected future benefit payments and expenses (undiscounted)7,925 7,683 
Expected future gross premiums (undiscounted)
— — 
Expected future benefit payments and expenses (discounted; AOCI basis)5,225 5,127 
Expected future gross premiums (discounted; AOCI basis)— — 
Group Pension
Expected future benefit payments and expenses (undiscounted)552 578 
Expected future gross premiums (undiscounted)
— — 
Expected future benefit payments and expenses (discounted; AOCI basis)388 412 
Expected future gross premiums (discounted; AOCI basis)— — 
Health
Expected future benefit payments and expenses (undiscounted)1,914 1,987 
Expected future gross premiums (undiscounted)
56 60 
Expected future benefit payments and expenses (discounted; AOCI basis)1,225 1,280 
Expected future gross premiums (discounted; AOCI basis)$44 $48 
The table below summarizes the revenue and interest related to nonparticipating traditional and limited payment contracts:
Six Months Ended June 30,
2026202520262025
Gross PremiumInterest Accretion
(in millions)
Revenue and Interest Accretion
Term$125 $161 $30 $32 
Payout
81 116 110 105 
Group Pension— — 8 9 
Health3 5 25 26 
Total$209 $282 $173 $172 
The following table provides the weighted average interest rates for the liability for future policy benefits:
June 30, 2026December 31, 2025
Weighted Average Interest Rate
Term
Interest accretion rate5.5 %5.6 %
Current discount rate5.2 %4.9 %
Payout
Interest accretion rate4.6 %4.5 %
Current discount rate5.2 %5.0 %
Group Pension
Interest accretion rate3.3 %3.4 %
Current discount rate5.1 %4.8 %
Health
Interest accretion rate3.4 %3.4 %
Current discount rate5.3 %5.0 %
The following table provides the balance, changes in and the weighted average durations of the additional insurance liabilities:
Six Months Ended June 30,
20262025
Corporate and Other
UL
(in millions)
Balance, beginning of period$1,328 $1,246 
Beginning balance before AOCI adjustments1,347 1,302 
Effect of changes in interest rate & cash flow assumptions and model changes— — 
Effect of actual variances from expected experience1 4 
Adjusted beginning of period balance1,348 1,306 
Interest accrual30 29 
Net assessments collected31 34 
Benefit payments(39)(45)
Ending balance before shadow reserve adjustments1,370 1,324 
Effect of reserve adjustment recorded in AOCI(15)(53)
Balance, end of period$1,355 $1,271 
Net liability for additional liability $1,355 $1,271 
Less: Reinsurance recoverable(1,117)— 
Net liability for additional liability, after reinsurance recoverable$238 $1,271 
Weighted-average duration of additional liability - death benefit (years)18.119.1
The following tables provide the revenue, interest and weighted average interest rates, related to the additional insurance liabilities:
Six Months Ended June 30,
2026202520262025
AssessmentsInterest Accretion
(in millions)
Revenue and Interest Accretion
UL$292 $316 $30 $29 
Total$292 $316 $30 $29 
June 30, 2026December 31, 2025
Weighted Average Interest Rate
UL4.5 %4.5 %
Interest accretion rate4.5 %4.5 %
The discount rate used for additional insurance liabilities reserve is based on the crediting rate at issue.