v3.26.1
Future Policy Benefits
 6 Months Ended
Jun. 30, 2026
Insurance [Abstract]  
Liability for Future Policy Benefits and Unpaid Claims Disclosure
4. Future Policy Benefits
The Company establishes liabilities for amounts payable under insurance policies. These liabilities are comprised of traditional and limited-payment contracts and associated deferred profit liability (“DPL”), additional insurance liabilities, participating life and short-duration contracts.
The Company’s future policy benefits (“FPBs”) on the interim condensed consolidated balance sheets were as follows at:
June 30, 2026December 31, 2025
(In millions)
Traditional and Limited-Payment Contracts:
RIS - Annuities
$78,936 $79,523 
Asia:
Whole and term life & endowments
8,565 10,140 
Accident & health
6,822 7,913 
Latin America - Fixed annuities
12,608 12,336 
Corporate & Other - Long-term care
15,345 15,224 
Deferred Profit Liabilities:
RIS - Annuities
3,859 3,855 
Asia:
Whole and term life & endowments
948 919 
Accident & health
992 993 
Latin America - Fixed annuities
555 562 
Additional Insurance Liabilities:
Asia:
Variable life
1,025 1,074 
Universal and variable universal life
318 330 
Corporate & Other - Universal and variable universal life
2,766 2,713 
Corporate & Other - Participating life
46,738 47,359 
Other long-duration (1)
11,300 11,148 
Short-duration and other
15,373 14,766 
Total
$206,150 $208,855 
_______________
(1)This balance represents liabilities for various smaller product lines across multiple segments, as well as Corporate & Other.
Rollforwards — Traditional and Limited-Payment Contracts
The following information about the direct and assumed liability for FPBs includes disaggregated rollforwards of expected future net premiums and expected future benefits. The products grouped within these rollforwards were selected based upon common characteristics and valuations using similar inputs, judgments, assumptions and methodologies within a particular segment of the business. The adjusted balance in each disaggregated rollforward reflects the remeasurement (gains) losses. All amounts presented in the rollforwards and accompanying financial information do not include a reduction for amounts ceded to reinsurers, except with respect to ending net liability for FPB balances where applicable.
RIS — Annuities
The RIS segment’s annuity products include pension risk transfers (including assumed pension risk transfers from the United Kingdom (“U.K.”)), certain structured settlements and certain institutional income annuities, which are mainly single premium spread-based products. The Company reinsures portions of certain pension risk transfers and structured settlements on a modified coinsurance basis. Information regarding these products was as follows:
Six Months
Ended
June 30,
20262025
(Dollars in millions)
Present Value of Expected Net Premiums
Balance, beginning of period, at current discount rate at balance sheet date$— $— 
Balance, beginning of period, at original discount rate$— $— 
Effect of actual variances from expected experience (1)
(4)(39)
Adjusted balance (4)(39)
Issuances
2,169 2,769 
Net premiums collected
(2,165)(2,730)
Ending balance at original discount rate— — 
Balance, end of period, at current discount rate at balance sheet date$— $— 
Present Value of Expected FPBs
Balance, beginning of period, at current discount rate at balance sheet date$79,842 $66,621 
Balance, beginning of period, at original discount rate$81,498 $69,643 
Effect of actual variances from expected experience (1)
(30)(100)
Adjusted balance81,468 69,543 
Issuances
2,187 2,797 
Interest accrual
1,943 1,676 
Benefit payments
(3,851)(3,288)
Effect of foreign currency translation
(19)27 
Ending balance at original discount rate81,728 70,755 
Effect of changes in discount rate assumptions
(2,434)(2,280)
Effect of foreign currency translation on the effect of changes in discount rate assumptions(1)— 
Balance, end of period, at current discount rate at balance sheet date79,293 68,475 
Cumulative amount of fair value hedging adjustments(357)(282)
Net liability for FPBs
78,936 68,193 
Less: Reinsurance recoverables
12,104 2,207 
Net liability for FPBs, net of reinsurance
$66,832 $65,986 
Undiscounted - Expected future benefit payments$146,583 $128,551 
Discounted - Expected future benefit payments (at current discount rate at balance sheet date)$79,293 $68,475 
Weighted-average duration of the liability8 years8 years
Weighted-average interest accretion (original locked-in) rate4.9 %4.9 %
Weighted-average current discount rate at balance sheet date5.6 %5.5 %
_________________
(1)For the six months ended June 30, 2025, the net effect of actual variances from expected experience was largely offset by the corresponding impact in DPL associated with the RIS segment’s annuity products of $46 million.
Asia
Whole and Term Life & Endowments
The Asia segment’s whole and term life & endowment products in Japan and Korea offer various life insurance coverages to customers. Information regarding these products was as follows:
Six Months
Ended
June 30,
20262025
(Dollars in millions)
Present Value of Expected Net Premiums
Balance, beginning of period, at current discount rate at balance sheet date$3,910 $4,023 
Balance, beginning of period, at original discount rate$4,337 $4,286 
Effect of actual variances from expected experience
(32)(44)
Adjusted balance4,305 4,242 
Issuances
346 290 
Interest accrual
46 39 
Net premiums collected
(332)(313)
Effect of foreign currency translation
(148)340 
Ending balance at original discount rate4,217 4,598 
Effect of changes in discount rate assumptions
(528)(332)
Effect of foreign currency translation on the effect of changes in discount rate assumptions
17 (25)
Balance, end of period, at current discount rate at balance sheet date$3,706 $4,241 
Present Value of Expected FPBs
Balance, beginning of period, at current discount rate at balance sheet date$14,050 $15,190 
Balance, beginning of period, at original discount rate$15,358 $15,252 
Effect of actual variances from expected experience
(12)(43)
Adjusted balance15,346 15,209 
Issuances346 290 
Interest accrual195 188 
Benefit payments(504)(482)
Effect of foreign currency translation
(637)1,286 
Ending balance at original discount rate14,746 16,491 
Effect of changes in discount rate assumptions
(2,510)(433)
Effect of foreign currency translation on the effect of changes in discount rate assumptions
32 27 
Balance, end of period, at current discount rate at balance sheet date12,268 16,085 
Cumulative impact of flooring the future policyholder benefits reserve
3 — 
Net liability for FPBs
8,565 11,844 
Less: Amount due to reinsurer
(2)(2)
Net liability for FPBs, net of reinsurance
$8,567 $11,846 
Undiscounted:
Expected future gross premiums$9,042 $9,474 
Expected future benefit payments$25,791 $27,843 
Discounted (at current discount rate at balance sheet date):
Expected future gross premiums$7,096 $7,837 
Expected future benefit payments$12,268 $16,085 
Weighted-average duration of the liability15 years17 years
Weighted-average interest accretion (original locked-in) rate2.8 %2.6 %
Weighted-average current discount rate at balance sheet date4.5 %3.0 %
Accident & Health
The Asia segment’s accident & health products in Japan and Korea offer various hospitalization, cancer, critical illness, disability, income protection and personal accident coverage. Information regarding these products was as follows:
Six Months
Ended
June 30,
20262025
(Dollars in millions)
Present Value of Expected Net Premiums
Balance, beginning of period, at current discount rate at balance sheet date$15,389 $17,203 
Balance, beginning of period, at original discount rate$18,243 $18,820 
Effect of actual variances from expected experience
(73)(200)
Adjusted balance18,170 18,620 
Issuances
429 636 
Interest accrual
106 113 
Net premiums collected
(864)(939)
Effect of foreign currency translation and other - net
(677)1,836 
Ending balance at original discount rate17,164 20,266 
Effect of changes in discount rate assumptions
(3,453)(2,204)
Effect of foreign currency translation on the effect of changes in discount rate assumptions
117 (161)
Balance, end of period, at current discount rate at balance sheet date$13,828 $17,901 
Present Value of Expected FPBs
Balance, beginning of period, at current discount rate at balance sheet date$23,153 $26,565 
Balance, beginning of period, at original discount rate$32,942 $32,838 
Effect of actual variances from expected experience
(77)(208)
Adjusted balance32,865 32,630 
Issuances429 635 
Interest accrual229 239 
Benefit payments(636)(647)
Effect of foreign currency translation and other - net
(1,282)3,064 
Ending balance at original discount rate31,605 35,921 
Effect of changes in discount rate assumptions
(11,531)(8,209)
Effect of foreign currency translation on the effect of changes in discount rate assumptions
395 (572)
Balance, end of period, at current discount rate at balance sheet date20,469 27,140 
Cumulative impact of flooring the future policyholder benefits reserve
181 156 
Net liability for FPBs
6,822 9,395 
Less: Reinsurance recoverables
96 132 
Net liability for FPBs, net of reinsurance
$6,726 $9,263 
Undiscounted:
Expected future gross premiums$34,799 $40,090 
Expected future benefit payments$41,866 $47,275 
Discounted (at current discount rate at balance sheet date):
Expected future gross premiums$24,022 $30,717 
Expected future benefit payments$20,469 $27,140 
Weighted-average duration of the liability17 years21 years
Weighted-average interest accretion (original locked-in) rate1.7 %1.7 %
Weighted-average current discount rate at balance sheet date4.5 %3.2 %
Latin America — Fixed Annuities
The Latin America segment’s fixed annuity products in Chile and Mexico include fixed income annuities that provide for asset distribution needs. Information regarding these products was as follows:
Six Months
Ended
June 30,
20262025
(Dollars in millions)
Present Value of Expected Net Premiums
Balance, beginning of period, at current discount rate at balance sheet date$—$—
Balance, beginning of period, at original discount rate
$—$—
Effect of actual variances from expected experience
——
Adjusted balance——
Issuances
879740
Interest accrual
22
Net premiums collected
(881)(742)
Ending balance at original discount rate——
Balance, end of period, at current discount rate at balance sheet date$—$—
Present Value of Expected FPBs
Balance, beginning of period, at current discount rate at balance sheet date$12,336$9,600
Balance, beginning of period, at original discount rate$11,588$9,133
Effect of actual variances from expected experience
4(1)
Adjusted balance11,5929,132
Issuances894778
Interest accrual214181
Benefit payments(483)(389)
Inflation adjustment328216
Effect of foreign currency translation
(270)621
Ending balance at original discount rate12,27510,539
Effect of changes in discount rate assumptions
335397
Effect of foreign currency translation on the effect of changes in discount rate assumptions
(2)28
Balance, end of period, at current discount rate at balance sheet date12,60810,964
Net liability for FPBs
$12,608$10,964
Undiscounted - Expected future benefit payments$18,052$15,671
Discounted - Expected future benefit payments (at current discount rate at balance sheet date)$12,608$10,964
Weighted-average duration of the liability10 years10 years
Weighted-average interest accretion (original locked-in) rate3.6 %3.7 %
Weighted-average current discount rate at balance sheet date3.2 %3.1 %
Corporate & Other — Long-term Care
Corporate & Other’s long-term care products offer protection against potentially high costs of long-term health care services. Information regarding these products was as follows:
Six Months
Ended
June 30,
20262025
(Dollars in millions)
Present Value of Expected Net Premiums
Balance, beginning of period, at current discount rate at balance sheet date$5,548$5,475
Balance, beginning of period, at original discount rate$5,515$5,568
Effect of actual variances from expected experience
57(3)
Adjusted balance5,5725,565
Interest accrual
141141
Net premiums collected
(288)(280)
Ending balance at original discount rate5,4255,426
Effect of changes in discount rate assumptions
(42)(6)
Balance, end of period, at current discount rate at balance sheet date$5,383$5,420
Present Value of Expected FPBs
Balance, beginning of period, at current discount rate at balance sheet date$20,772$20,012
Balance, beginning of period, at original discount rate$21,490$21,024
Effect of actual variances from expected experience
10726
Adjusted balance21,59721,050
Interest accrual566553
Benefit payments(498)(452)
Ending balance at original discount rate21,66521,151
Effect of changes in discount rate assumptions
(937)(928)
Balance, end of period, at current discount rate at balance sheet date20,72820,223
Net liability for FPBs
$15,345$14,803
Undiscounted:
Expected future gross premiums$10,075$10,269
Expected future benefit payments$44,361$44,566
Discounted (at current discount rate at balance sheet date):
Expected future gross premiums$6,745$6,870
Expected future benefit payments$20,728$20,223
Weighted-average duration of the liability13 years13 years
Weighted-average interest accretion (original locked-in) rate5.4 %5.4 %
Weighted-average current discount rate at balance sheet date5.8 %5.8 %
Rollforwards — Additional Insurance Liabilities
The Company establishes additional insurance liabilities for annuitization, death or other insurance benefits for variable life, universal life, and variable universal life contract features whereby the Company guarantees to the contractholder either a secondary guarantee or a guaranteed paid-up benefit. The policy can remain in force, even if the base policy account value is zero, as long as contractual secondary guarantee requirements have been met.
The following information about the direct liability for additional insurance liabilities includes disaggregated rollforwards. The products grouped within these rollforwards were selected based upon common characteristics and valuations using similar inputs, judgments, assumptions and methodologies within a particular segment of the business. The adjusted balance in each disaggregated rollforward reflects the remeasurement (gains) losses. All amounts presented in these rollforwards and accompanying financial information do not include a reduction for amounts ceded to reinsurers.
Asia — Variable Life and Universal and Variable Universal Life
The Asia segment’s variable life and universal and variable universal life products in Japan offer a contract feature whereby the Company guarantees to the contractholder a secondary guarantee. Information regarding these additional insurance liabilities was as follows:
Six Months
Ended
June 30,
2026202520262025
Variable Life
Universal and Variable Universal Life
(Dollars in millions)
Balance, beginning of period
$1,074$1,108$330$355
Less: Accumulated other comprehensive income (loss) (“AOCI”) adjustment
——3210
Balance, beginning of period, before AOCI adjustment
1,0741,108298345
Effect of actual variances from expected experience(4)(6)(2)(4)
Adjusted balance
1,0701,102296341
Assessments accrual(2)(2)(4)—
Interest accrual8923
Excess benefits paid(13)(19)——
Effect of foreign currency translation and other, net
(38)98(11)31
Balance, end of period, before AOCI adjustment
1,0251,188283375
Add: AOCI adjustment
——3511
Balance, end of period
$1,025$1,188$318$386
Weighted-average duration of the liability16 years16 years41 years42 years
Weighted-average interest accretion rate1.5 %1.5 %1.5 %1.5 %
Corporate & Other — Universal and Variable Universal Life
Corporate & Other’s universal and variable universal life products provide a contract feature whereby the Company guarantees to the contractholder a secondary guarantee or a guaranteed paid-up benefit. Information regarding these additional insurance liabilities was as follows:
Six Months
Ended
June 30,
20262025
Universal and Variable Universal Life
(Dollars in millions)
Balance, beginning of period$2,713$2,496
Less: AOCI adjustment (13)(17)
Balance, beginning of period, before AOCI adjustment2,7262,513
Effect of actual variances from expected experience3118
Adjusted balance2,7572,531
Assessments accrual5554
Interest accrual7468
Excess benefits paid(107)(71)
Balance, end of period, before AOCI adjustment2,7792,582
Add: AOCI adjustment(13)(15)
Balance, end of period2,7662,567
Less: Reinsurance recoverables
2,4082,230
Balance, end of period, net of reinsurance$358$337
Weighted-average duration of the liability14 years15 years
Weighted-average interest accretion rate5.5 %5.5 %
The Company’s gross premiums or assessments and interest expense recognized in the interim condensed consolidated statements of operations and comprehensive income (loss) for long-duration contracts, excluding Corporate & Other’s participating life contracts, were as follows:
Six Months
Ended
June 30,
20262025
Gross Premiums or
Assessments (1)		Interest Expense (2)Gross Premiums or
Assessments (1)		Interest Expense (2)
(In millions)
Traditional and Limited-Payment Contracts:
RIS - Annuities
$2,264 $1,943 $2,799 $1,676 
Asia:
Whole and term life & endowments
653 149 600 149 
Accident & health
1,455 123 1,561 126 
Latin America - Fixed annuities
881 212 742 179 
Corporate & Other - Long-term care
363 425 359 412 
Deferred Profit Liabilities:
RIS - Annuities
N/A93 N/A91 
Asia:
Whole and term life & endowments
N/A25 N/A21 
Accident & health
N/A12 N/A11 
Latin America - Fixed annuities
N/A11 N/A10 
Additional Insurance Liabilities:
Asia:
Variable life
112 8 72 9 
Universal and variable universal life
31 2 1 3 
Corporate & Other - Universal and variable universal life
295 74 317 68 
Other long-duration
3,173 253 2,476 243 
 Total
$9,227 $3,330 $8,927 $2,998 
__________________
(1)Gross premiums are related to traditional and limited-payment contracts and are included in premiums. Assessments are related to additional insurance liabilities and are included in universal life and investment-type product policy fees and net investment income.
(2)Interest expense is included in policyholder benefits and claims.
Liabilities for Unpaid Claims and Claim Expenses
Rollforward of Claims and Claim Adjustment Expenses
Information regarding the liabilities for unpaid claims and claim adjustment expenses was as follows:
Six Months
Ended
June 30,
20262025
(In millions)
Balance, beginning of period$17,130 $16,118 
Less: Reinsurance recoverables2,906 2,790 
Net balance, beginning of period14,224 13,328 
Incurred related to:
Current period14,609 14,590 
Prior periods (1)109 138 
Total incurred14,718 14,728 
Paid related to:
Current period(9,214)(9,127)
Prior periods(5,069)(4,763)
Total paid(14,283)(13,890)
Net balance, end of period14,659 14,166 
Add: Reinsurance recoverables3,094 3,022 
Balance, end of period (included in FPBs and other policy-related balances)
$17,753 $17,188 
__________________
(1)For the six months ended June 30, 2026 and 2025, incurred claims and claim adjustment expenses associated with prior periods increased due to events incurred in prior periods but reported in the respective current period.