| Insurance Liabilities |
3. Insurance Liabilities Liability for Future Policy Benefits Information regarding liability for future policy benefits (“LFPB”) for non-participating traditional and limited-payment contracts was as follows: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Six Months Ended June 30, | | | 2026 | | 2025 | | | Term and Whole Life Insurance | | Income Annuities | | Structured Settlement and Pension Risk Transfer Annuities | | Term and Whole Life Insurance | | Income Annuities | | Structured Settlement and Pension Risk Transfer Annuities | | | (Dollars in millions) | Present value of expected net premiums: | | | | | | | | | | | | | Balance, beginning of period | | $ | 2,504 | | | $ | — | | | $ | — | | | $ | 2,808 | | | $ | — | | | $ | — | | Beginning balance at original discount rate | | 2,747 | | | — | | | — | | | 3,161 | | | — | | | — | | Effect of model refinements | | — | | | — | | | — | | | 3 | | | — | | | — | | | | | | | | | | | | | | | Effect of actual variances from expected experience | | (58) | | | — | | | — | | | (11) | | | — | | | — | | Adjusted beginning of period balance | | 2,689 | | | — | | | — | | | 3,153 | | | — | | | — | | Issuances | | 6 | | | — | | | — | | | 8 | | | — | | | — | | Interest accrual | | 47 | | | — | | | — | | | 55 | | | — | | | — | | Net premiums collected | | (167) | | | — | | | — | | | (186) | | | — | | | — | | Ending balance at original discount rate | | 2,575 | | | — | | | — | | | 3,030 | | | — | | | — | | Effect of changes in discount rate assumptions | | (265) | | | — | | | — | | | (302) | | | — | | | — | | Balance, end of period | | $ | 2,310 | | | $ | — | | | $ | — | | | $ | 2,728 | | | $ | — | | | $ | — | | Present value of expected future policy benefits: | | | | | | | | | | | | | Balance, beginning of period | | $ | 5,053 | | | $ | 3,985 | | | $ | 6,009 | | | $ | 5,325 | | | $ | 3,763 | | | $ | 6,118 | | Beginning balance at original discount rate | | 5,513 | | | 4,272 | | | 6,635 | | | 5,989 | | | 4,161 | | | 6,876 | | Effect of model refinements | | — | | | — | | | 1 | | | 2 | | | — | | | — | | | | | | | | | | | | | | | Effect of actual variances from expected experience | | (90) | | | (14) | | | 2 | | | (14) | | | (27) | | | (24) | | Adjusted beginning of period balance | | 5,423 | | | 4,258 | | | 6,638 | | | 5,977 | | | 4,134 | | | 6,852 | | Issuances | | 6 | | | 212 | | | — | | | 9 | | | 185 | | | — | | Interest accrual | | 99 | | | 84 | | | 143 | | | 109 | | | 80 | | | 148 | | Benefit payments | | (203) | | | (216) | | | (275) | | | (273) | | | (206) | | | (269) | | Ending balance at original discount rate | | 5,325 | | | 4,338 | | | 6,506 | | | 5,822 | | | 4,193 | | | 6,731 | | Effect of changes in discount rate assumptions | | (520) | | | (349) | | | (708) | | | (555) | | | (327) | | | (678) | | Balance, end of period | | $ | 4,805 | | | $ | 3,989 | | | $ | 5,798 | | | $ | 5,267 | | | $ | 3,866 | | | $ | 6,053 | | Net liability for future policy benefits, end of period | | $ | 2,495 | | | $ | 3,989 | | | $ | 5,798 | | | $ | 2,539 | | | $ | 3,866 | | | $ | 6,053 | | Less: Reinsurance recoverable, end of period | | 25 | | | 32 | | | 53 | | | 27 | | | 32 | | | 59 | | Net liability for future policy benefits, after reinsurance recoverable | | $ | 2,470 | | | $ | 3,957 | | | $ | 5,745 | | | $ | 2,512 | | | $ | 3,834 | | | $ | 5,994 | | Weighted-average duration of liability | | 6.9 years | | 7.5 years | | 11.5 years | | 7.4 years | | 7.8 years | | 11.5 years | Weighted-average interest accretion rate | | 3.91 | % | | 4.14 | % | | 4.47 | % | | 3.92 | % | | 4.08 | % | | 4.46 | % | Current discount rate | | 5.29 | % | | 5.38 | % | | 5.64 | % | | 5.15 | % | | 5.25 | % | | 5.54 | % | Gross premiums or assessments recognized during period | | $ | 241 | | | $ | 287 | | | $ | — | | | $ | 269 | | | $ | 235 | | | $ | — | | Expected future gross premiums, undiscounted | | $ | 4,848 | | | $ | — | | | $ | — | | | $ | 5,663 | | | $ | — | | | $ | — | | Expected future gross premiums, discounted | | $ | 3,625 | | | $ | — | | | $ | — | | | $ | 4,175 | | | $ | — | | | $ | — | | Expected future benefit payments, undiscounted | | $ | 7,108 | | | $ | 6,079 | | | $ | 12,554 | | | $ | 7,896 | | | $ | 5,900 | | | $ | 13,031 | | Expected future benefit payments, discounted | | $ | 5,325 | | | $ | 4,338 | | | $ | 6,506 | | | $ | 5,822 | | | $ | 4,193 | | | $ | 6,731 | |
Information regarding the additional insurance liabilities for universal life-type contracts with secondary guarantees was as follows: | | | | | | | | | | | | | | | | | Six Months Ended
June 30, | | | 2026 | | 2025 | | | (Dollars in millions) | | Balance, beginning of period | | $ | 10,077 | | | $ | 8,986 | | | Beginning balance before the effect of unrealized gains and losses | | 10,298 | | | 9,277 | | | | | | | | Effect of actual variances from expected experience | | 61 | | | 83 | | | Adjusted beginning of period balance | | 10,359 | | | 9,360 | | | Interest accrual | | 253 | | | 228 | | | Net assessments collected | | 250 | | | 236 | | | Benefit payments | | (198) | | | (236) | | | | | | | | Ending balance before the effect of unrealized gains and losses | | 10,664 | | | 9,588 | | | Effect of unrealized gains and losses | | (245) | | | (252) | | | Balance, end of period | | 10,419 | | | 9,336 | | | Less: Reinsurance recoverable, end of period | | 1,844 | | | 1,567 | | | Net additional liability, after reinsurance recoverable | | $ | 8,575 | | | $ | 7,769 | | | Weighted-average duration of liability | | 6.6 years | | 6.6 years | | Weighted-average interest accretion rate | | 4.95 | % | | 4.95 | % | Gross assessments recognized during period | | $ | 532 | | | $ | 533 | |
A reconciliation of the net LFPBs for non-participating traditional and limited-payment contracts and the additional insurance liabilities for universal life-type contracts with secondary guarantees reported in the preceding rollforward tables to LFPBs on the consolidated balance sheets was as follows at: | | | | | | | | | | | | | | | | | June 30, | | | 2026 | | 2025 | | | (In millions) | | Liabilities reported in the preceding rollforward tables | | $ | 22,701 | | | $ | 21,794 | | | Long-term care insurance (1) | | 4,988 | | | 5,153 | | ULSG liabilities, including liability for profits followed by losses | | 64 | | | 941 | | Participating whole life insurance (2) | | 3,324 | | | 3,254 | | Deferred profit liabilities | | 467 | | | 457 | | | Other | | 396 | | | 375 | | | Total liability for future policy benefits | | $ | 31,940 | | | $ | 31,974 | |
_______________ (1)Includes liabilities related to fully reinsured individual long-term care insurance. See Note 2. (2)Participating whole life insurance uses an interest assumption based on the non-forfeiture interest rate, ranging from 3.5% to 4.5%, and mortality rates guaranteed in calculating the cash surrender values described in such contracts, and also includes a liability for terminal dividends. Participating whole life insurance represented 3% of the Company’s life insurance in-force at both June 30, 2026 and 2025, and 37% and 39% of gross traditional life insurance premiums for the six months ended June 30, 2026 and 2025, respectively. Policyholder Account Balances Information regarding policyholder account balances was as follows: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Universal Life Insurance | | Variable Annuities (1) | | Index-linked Annuities | | Fixed Rate Annuities | | ULSG | | Company-Owned Life Insurance (1) | | | (Dollars in millions) | | Six Months Ended June 30, 2026 | | | | | | | | | | | | | | Balance, beginning of period | | $ | 2,627 | | | $ | 3,403 | | | $ | 52,594 | | | $ | 13,252 | | | $ | 4,461 | | | $ | 646 | | | Premiums and deposits | | 129 | | | 25 | | | 4,143 | | | 123 | | | 302 | | | — | | | Surrenders and withdrawals | | (37) | | | (253) | | | (4,606) | | | (688) | | | (12) | | | — | | | Benefit payments | | (28) | | | (42) | | | (231) | | | (184) | | | (29) | | | (7) | | | Net transfers from (to) separate account | | 13 | | | 59 | | | — | | | — | | | — | | | — | | | Interest credited | | 50 | | | 46 | | | 391 | | | 266 | | | 73 | | | 15 | | | Policy charges | | (103) | | | (10) | | | (23) | | | — | | | (474) | | | (5) | | | Changes related to embedded derivatives | | 2 | | | — | | | 2,523 | | | — | | | — | | | — | | | | | | | | | | | | | | | | Balance, end of period | | $ | 2,653 | | | $ | 3,228 | | | $ | 54,791 | | | $ | 12,769 | | | $ | 4,321 | | | $ | 649 | | | Weighted-average crediting rate (2) | | 1.90 | % | | 1.39 | % | | 0.95 | % | | 2.05 | % | | 1.66 | % | | 2.32 | % | | Six Months Ended June 30, 2025 | | | | | | | | | | | | | | Balance, beginning of period | | $ | 2,590 | | | $ | 3,833 | | | $ | 48,605 | | | $ | 14,665 | | | $ | 4,779 | | | $ | 1,166 | | | Premiums and deposits | | 130 | | | 26 | | | 4,001 | | | 520 | | | 313 | | | — | | | Surrenders and withdrawals | | (52) | | | (295) | | | (3,547) | | | (666) | | | (13) | | | — | | | Benefit payments | | (35) | | | (44) | | | (173) | | | (182) | | | (49) | | | (4) | | | Net transfers from (to) separate account | | 15 | | | 66 | | | — | | | — | | | — | | | (525) | | | Interest credited | | 53 | | | 50 | | | 378 | | | 282 | | | 77 | | | 12 | | | Policy charges | | (96) | | | (11) | | | (17) | | | — | | | (488) | | | (4) | | | Changes related to embedded derivatives | | — | | | — | | | 990 | | | — | | | — | | | — | | | | | | | | | | | | | | | | Balance, end of period | | $ | 2,605 | | | $ | 3,625 | | | $ | 50,237 | | | $ | 14,619 | | | $ | 4,619 | | | $ | 645 | | | Weighted-average crediting rate (2) | | 2.04 | % | | 1.34 | % | | 0.96 | % | | 1.93 | % | | 1.64 | % | | 1.45 | % |
_______________ (1)Includes liabilities related to separate account products where the contract holder elected a general account investment option. (2)Excludes the effects of embedded derivatives related to index-linked crediting rates. A reconciliation of policyholder account balances reported in the preceding rollforward table to the liability for policyholder account balances on the consolidated balance sheets was as follows at: | | | | | | | | | | | | | | | | | June 30, | | | 2026 | | 2025 | | | (In millions) | | Policyholder account balances reported in the preceding rollforward table | | $ | 78,411 | | | $ | 76,350 | | | Funding agreements classified as investment contracts | | 9,131 | | | 10,174 | | Institutional group annuities | | 660 | | | 566 | | | Other investment contract liabilities | | 874 | | | 956 | | | Total policyholder account balances | | $ | 89,076 | | | $ | 88,046 | |
The balance of account values by range of guaranteed minimum crediting rates and the related range of difference, in basis points, between rates being credited to policyholders and the respective guaranteed minimums was as follows at: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Range of Guaranteed Minimum Crediting Rate | | At Guaranteed Minimum | | 1 to 50 Basis Points Above | | 51 to 150 Basis Points Above | | Greater than 150 Basis Points Above | | Total | | | (In millions) | | June 30, 2026 | | | | | | | | | | | Annuities (1): | | | | | | | | | | | Less than 2.00% | | $ | 357 | | | $ | 132 | | | $ | 185 | | | $ | 7,911 | | | $ | 8,585 | | 2.00% to 3.99% | | 6,042 | | | 493 | | | 429 | | | 316 | | | 7,280 | | Greater than 3.99% | | 703 | | | — | | | — | | | — | | | 703 | | Total | | $ | 7,102 | | | $ | 625 | | | $ | 614 | | | $ | 8,227 | | | $ | 16,568 | | Life insurance (2) (3): | | | | | | | | | | | Less than 2.00% | | $ | — | | | $ | — | | | $ | — | | | $ | 460 | | | $ | 460 | | 2.00% to 3.99% | | — | | | 525 | | | 43 | | | 112 | | | 680 | | Greater than 3.99% | | 1,439 | | | — | | | — | | | — | | | 1,439 | | | Total | | $ | 1,439 | | | $ | 525 | | | $ | 43 | | | $ | 572 | | | $ | 2,579 | | | ULSG (3): | | | | | | | | | | | Less than 2.00% | | $ | — | | | $ | — | | | $ | — | | | $ | — | | | $ | — | | 2.00% to 3.99% | | 928 | | | 1,239 | | | 1,454 | | | 215 | | | 3,836 | | Greater than 3.99% | | 471 | | | — | | | — | | | — | | | 471 | | | Total | | $ | 1,399 | | | $ | 1,239 | | | $ | 1,454 | | | $ | 215 | | | $ | 4,307 | | | December 31, 2025 | | | | | | | | | | | | Annuities (1): | | | | | | | | | | | Less than 2.00% | | $ | 394 | | | $ | 126 | | | $ | 188 | | | $ | 8,134 | | | $ | 8,842 | | 2.00% to 3.99% | | 6,283 | | | 498 | | | 517 | | | 327 | | | 7,625 | | Greater than 3.99% | | 740 | | | — | | | — | | | — | | | 740 | | | Total | | $ | 7,417 | | | $ | 624 | | | $ | 705 | | | $ | 8,461 | | | $ | 17,207 | | | Life insurance (2) (3): | | | | | | | | | | | Less than 2.00% | | $ | — | | | $ | — | | | $ | — | | | $ | 413 | | | $ | 413 | | 2.00% to 3.99% | | — | | | 529 | | | 43 | | | 112 | | | 684 | | Greater than 3.99% | | 1,469 | | | — | | | — | | | — | | | 1,469 | | | Total | | $ | 1,469 | | | $ | 529 | | | $ | 43 | | | $ | 525 | | | $ | 2,566 | | | ULSG (3): | | | | | | | | | | | Less than 2.00% | | $ | — | | | $ | — | | | $ | — | | | $ | — | | | $ | — | | 2.00% to 3.99% | | 965 | | | 1,279 | | | 1,496 | | | 222 | | | 3,962 | | Greater than 3.99% | | 484 | | | — | | | — | | | — | | | 484 | | | Total | | $ | 1,449 | | | $ | 1,279 | | | $ | 1,496 | | | $ | 222 | | | $ | 4,446 | |
_______________ (1)Includes policyholder account balances for fixed rate annuities and the fixed account portion of variable annuities. (2)Includes policyholder account balances for retained asset accounts, universal life policies and the fixed account portion of universal variable life insurance policies. (3)Amounts are gross of policy loans. See Note 5 for information regarding net amount at risk and cash surrender values.
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