Future Policy Benefits (Tables)

6 Months Ended

Jun. 30, 2026

Liability for Future Policy Benefit, Activity

The following tables present the balances of and changes in the Company’s liability for future policy benefits for long-duration reinsurance contracts for its Traditional business, which primarily consists of individual life, group life and critical illness reinsurance, for the six months ended June 30, 2026 and 2025 (dollars in millions). During the first quarter, the Company reclassified amounts previously presented in the “Derecognition” line related to recaptures and treaty amendments that resulted in the termination of an existing treaty and the reissuance under a new treaty to the “Effects of actual variances from expected experience” line in the rollforwards below. Prior periods have been recast to conform with the current presentation. This change in presentation did not affect the consolidated balance sheet, income statement or cash flows previously reported.


For the six months ended June 30, 2026:	U.S. and Latin America – Traditional			Canada – Traditional			Europe, Middle East and Africa – Traditional			Asia Pacific – Traditional
Present Value of Expected Net Premiums
Beginning of year balance at original discount rate	$	79,828		$	23,247		$	18,353		$	50,206
Effect of changes in cash flow assumptions	—			—			—			—
Effect of actual variances from expected experience	(2,239)			18			489			34
Adjusted balance, beginning of year	77,589			23,265			18,842			50,240
Issuances (1)	2,533			250			1,584			3,414
Interest accrual (2)	1,791			402			340			732
Net premiums collected (3)	(2,750)			(516)			(1,022)			(1,259)
Foreign currency translation	—			(771)			(280)			(688)
Ending balance at original discount rate	79,163			22,630			19,464			52,439
Effect of changes in discount rate assumptions	(8,845)			(4,490)			(3,046)			(13,093)
Balance, end of period	$	70,318		$	18,140		$	16,418		$	39,346

Present Value of Expected Future Policy Benefits
Beginning of year balance at original discount rate	$	94,710		$	26,896		$	20,363		$	55,572
Effect of changes in cash flow assumptions	—			—			—			—
Effect of actual variances from expected experience	(2,264)			14			478			39
Adjusted balance, beginning of year	92,446			26,910			20,841			55,611
Issuances (1)	2,533			250			1,592			3,400
Interest accrual (2)	2,152			513			368			827
Benefit payments (4)	(2,807)			(548)			(969)			(1,075)
Foreign currency translation	—			(892)			(321)			(718)
Ending balance at original discount rate	94,324			26,233			21,511			58,045
Effect of changes in discount rate assumptions	(11,127)			(3,991)			(3,640)			(15,618)
Balance, end of period	$	83,197		$	22,242		$	17,871		$	42,427

Liability for future policy benefits	$	12,879		$	4,102		$	1,453		$	3,081
Less: reinsurance recoverable	(840)			(244)			(13)			(69)
Net liability for future policy benefits	$	12,039		$	3,858		$	1,440		$	3,012

Weighted average duration of the liability (in years)	11			14			8			15
Weighted average interest accretion rate	4.6		%	3.7		%	3.6		%	2.9		%
Weighted average current discount rate	5.7		%	5.0		%	5.8		%	4.9		%

(1)Issuances: The present value, using the original discount rate, of the expected net premiums or the expected future policy benefits related to new insurance contracts that became effective during the current period and new policies assumed on existing contracts during the period.

(2)Interest accrual: The interest earned on the beginning present value of either the expected net premiums or the expected future policy benefits using the original interest rate.

(3)Net premiums collected: The portion of gross premiums collected from the ceding company that is used to fund expected benefit payments.

(4)Benefit payments: The release of the present value, using the original discount rate, of the expected future policy benefits due to death, lapse/withdrawal and other benefit payments based on current assumptions.


For the six months ended June 30, 2025:	U.S. and Latin America – Traditional			Canada – Traditional			Europe, Middle East and Africa – Traditional			Asia Pacific – Traditional
Present Value of Expected Net Premiums
Beginning of year balance at original discount rate	$	77,881		$	20,928		$	15,911		$	44,801
Effect of changes in cash flow assumptions	—			—			—			—
Effect of actual variances from expected experience	(487)			67			375			(174)
Adjusted balance, beginning of year	77,394			20,995			16,286			44,627
Issuances (1)	4,467			236			692			2,585
Interest accrual (2)	1,778			364			290			625
Net premiums collected (3)	(4,464)			(482)			(927)			(1,212)
Foreign currency translation	2			1,201			1,544			2,478
Ending balance at original discount rate	79,177			22,314			17,885			49,103
Effect of changes in discount rate assumptions	(8,281)			(4,617)			(2,979)			(13,052)
Balance, end of period	$	70,896		$	17,697		$	14,906		$	36,051

Present Value of Expected Future Policy Benefits
Beginning of year balance at original discount rate	$	90,711		$	24,309		$	17,365		$	49,712
Effect of changes in cash flow assumptions	—			—			—			—
Effect of actual variances from expected experience	(419)			72			371			(198)
Adjusted balance, beginning of year	90,292			24,381			17,736			49,514
Issuances (1)	4,467			236			692			2,585
Interest accrual (2)	2,131			470			312			714
Benefit payments (4)	(2,942)			(564)			(845)			(1,053)
Foreign currency translation	5			1,397			1,698			2,588
Ending balance at original discount rate	93,953			25,920			19,593			54,348
Effect of changes in discount rate assumptions	(10,645)			(3,996)			(3,396)			(15,482)
Balance, end of period	$	83,308		$	21,924		$	16,197		$	38,866

Liability for future policy benefits	$	12,412		$	4,227		$	1,291		$	2,815
Less: reinsurance recoverable	(788)			(261)			(17)			(78)
Net liability for future policy benefits	$	11,624		$	3,966		$	1,274		$	2,737

Weighted average duration of the liability (in years)	11			14			8			15
Weighted average interest accretion rate	4.7		%	3.6		%	3.4		%	2.7		%
Weighted average current discount rate	5.6		%	4.9		%	5.6		%	4.6		%

(2)Interest accrual: The interest earned on the beginning present value of either the expected net premiums or the expected future policy benefits using the original interest rate.

(3)Net premiums collected: The portion of gross premiums collected from the ceding company that is used to fund expected benefit payments.

The following tables summarize the Company’s Traditional business actual-to-expected variances, including the effects of treaty recaptures, and the effects of changes in cash flow and discount rate assumptions for the six months ended June 30, 2026 and 2025:

For the six months ended June 30, 2026:

Segment

Liability for future policy benefits at original discount rate

Changes in cash flow assumptions

Actual-to-expected variance

Impact of updating discount rate recognized in OCI

U.S. and Latin America – Traditional

$15.2 billion

None

$(25) million

$(85) million

Canada – Traditional

$3.6 billion

None

$(4) million

$5 million

Europe, Middle East and Africa – Traditional

$2.0 billion

None

$(11) million

$(29) million

Asia Pacific – Traditional

$5.6 billion

None

$5 million

$(38) million

For the six months ended June 30, 2025:

Segment

Liability for future policy benefits at original discount rate

Changes in cash flow assumptions

Actual-to-expected variance

Impact of updating discount rate recognized in OCI

U.S. and Latin America – Traditional

$14.8 billion

None

$68 million

$(72) million

Canada – Traditional

$3.6 billion

None

$5 million

$(98) million

Europe, Middle East and Africa – Traditional

$1.7 billion

None

$(4) million

$(83) million

Asia Pacific – Traditional

$5.2 billion

None

$(24) million

$(122) million

Financial Solutions Business

The following tables present the balances of and changes in the Company’s liability for future policy benefits, including the deferred profit liability related to the longevity business, for its Financial Solutions business, which primarily consists of longevity reinsurance, asset-intensive products (primarily annuities), financial reinsurance and pension risk transfer transactions, for the six months ended June 30, 2026 and 2025 (dollars in millions). During the first quarter, the Company reclassified amounts previously presented in the “Derecognition” line related to recaptures and treaty amendments that resulted in the termination of an existing treaty and the reissuance under a new treaty to the “Effects of actual variances from expected experience” line in the rollforwards below. Prior periods have been recast to conform with the current presentation. This change in presentation did not affect the consolidated balance sheet, income statement or cash flows previously reported.


For the six months ended June 30, 2026:	U.S. and Latin America – Financial Solutions			Canada – Financial Solutions			Europe, Middle East and Africa – Financial Solutions			Asia Pacific – Financial Solutions
Present Value of Expected Net Premiums
Beginning of year balance at original discount rate	$	2,627		$	3,518		$	87,259		$	2,106
Effect of changes in cash flow assumptions	—			—			—			—
Effect of actual variances from expected experience	(17)			(11)			174			76
Adjusted balance, beginning of year	2,610			3,507			87,433			2,182
Issuances (1)	528			—			7,746			6,878
Interest accrual (2)	53			62			1,749			12
Net premiums collected (3)	(647)			(178)			(3,844)			(7,426)
Foreign currency translation	—			(113)			(1,597)			(60)
Ending balance at original discount rate	2,544			3,278			91,487			1,586
Effect of changes in discount rate assumptions	(212)			(188)			(10,764)			(878)
Balance, end of period	$	2,332		$	3,090		$	80,723		$	708

Present Value of Expected Future Policy Benefits
Beginning of year balance at original discount rate	$	13,388		$	8,160		$	98,153		$	16,870
Effect of changes in cash flow assumptions	—			—			—			—
Effect of actual variances from expected experience	(14)			(11)			164			115
Adjusted balance, beginning of year	13,374			8,149			98,317			16,985
Issuances (1)	534			—			7,746			6,878
Interest accrual (2)	320			175			1,956			286
Benefit payments (4)	(660)			(251)			(3,950)			(540)
Foreign currency translation	—			(268)			(1,817)			(682)
Ending balance at original discount rate	13,568			7,805			102,252			22,927
Effect of changes in discount rate assumptions	(540)			(161)			(11,794)			(5,318)
Balance, end of period	$	13,028		$	7,644		$	90,458		$	17,609

Cumulative amount of fair value hedging adjustments	$	(10)		$	—		$	—		$	—

Liability for future policy benefits	$	10,686		$	4,554		$	9,735		$	16,901
Less: reinsurance recoverable	(2,940)			—			—			—
Net liability for future policy benefits	$	7,746		$	4,554		$	9,735		$	16,901

Weighted average duration of the liability (in years)	9			12			9			12
Weighted average interest accretion rate	4.5		%	4.1		%	4.0		%	2.1		%
Weighted average current discount rate	5.5		%	4.9		%	5.6		%	5.3		%

(2)Interest accrual: The interest earned on the beginning present value of either the expected net premiums or the expected future policy benefits using the original interest rate.

(3)Net premiums collected: The portion of gross premiums collected from the ceding company that is used to fund expected benefit payments.


For the six months ended June 30, 2025:	U.S. and Latin America – Financial Solutions			Canada – Financial Solutions			Europe, Middle East and Africa – Financial Solutions			Asia Pacific – Financial Solutions
Present Value of Expected Net Premiums
Beginning of year balance at original discount rate	$	1,346		$	3,614		$	71,360		$	2,758
Effect of changes in cash flow assumptions	—			—			—			—
Effect of actual variances from expected experience	(25)			7			(317)			(17)
Adjusted balance, beginning of year	1,321			3,621			71,043			2,741
Issuances (1)	2,118			—			7,619			2,452
Interest accrual (2)	20			66			1,325			23
Net premiums collected (3)	(2,185)			(185)			(4,388)			(2,978)
Foreign currency translation	—			202			7,556			247
Ending balance at original discount rate	1,274			3,704			83,155			2,485
Effect of changes in discount rate assumptions	(220)			(209)			(9,264)			(511)
Balance, end of period	$	1,054		$	3,495		$	73,891		$	1,974

Present Value of Expected Future Policy Benefits
Beginning of year balance at original discount rate	$	9,489		$	7,934		$	78,290		$	14,626
Effect of changes in cash flow assumptions	—			—			—			—
Effect of actual variances from expected experience	(28)			7			(323)			(22)
Adjusted balance, beginning of year	9,461			7,941			77,967			14,604
Issuances (1)	2,133			—			7,619			2,462
Interest accrual (2)	265			174			1,463			160
Benefit payments (4)	(526)			(235)			(3,077)			(324)
Foreign currency translation	—			452			8,267			1,337
Ending balance at original discount rate	11,333			8,332			92,239			18,239
Effect of changes in discount rate assumptions	(517)			(139)			(10,210)			(3,092)
Balance, end of period	$	10,816		$	8,193		$	82,029		$	15,147

Cumulative amount of fair value hedging adjustments	$	7		$	—		$	—		$	—

Liability for future policy benefits	$	9,769		$	4,698		$	8,138		$	13,173
Less: reinsurance recoverable	(1,354)			—			—			—
Net liability for future policy benefits	$	8,415		$	4,698		$	8,138		$	13,173

Weighted average duration of the liability (in years)	9			12			10			14
Weighted average interest accretion rate	4.1		%	4.0		%	3.5		%	1.9		%
Weighted average current discount rate	5.4		%	4.8		%	5.2		%	3.7		%

(2)Interest accrual: The interest earned on the beginning present value of either the expected net premiums or the expected future policy benefits using the original interest rate.

(3)Net premiums collected: The portion of gross premiums collected from the ceding company that is used to fund expected benefit payments.

The following tables summarize the Company’s Financial Solutions business actual-to-expected variances, including the effects of model updates and treaty recaptures, and the effects of changes in cash flow and discount rate assumptions for the six months ended June 30, 2026 and 2025:

For the six months ended June 30, 2026:

Segment

Liability for future policy benefits at original discount rate

Changes in cash flow assumptions

Actual-to-expected variance

Impact of updating discount rate recognized in OCI

U.S. and Latin America – Financial Solutions

$11.0 billion

None

$3 million

$(130) million

Canada – Financial Solutions

$4.5 billion

None

$55 million

Europe, Middle East and Africa – Financial Solutions

$10.8 billion

None

$(10) million

$(139) million

Asia Pacific – Financial Solutions

$21.3 billion

None

$39 million

$(902) million

For the six months ended June 30, 2025:

Segment

Liability for future policy benefits at original discount rate

Changes in cash flow assumptions

Actual-to-expected variance

Impact of updating discount rate recognized in OCI

U.S. and Latin America – Financial Solutions

$10.1 billion

None

$(3) million

$100 million

Canada – Financial Solutions

$4.6 billion

None

$(122) million

Europe, Middle East and Africa – Financial Solutions

$9.1 billion

None

$(6) million

$(51) million

Asia Pacific – Financial Solutions

$15.8 billion

None

$(5) million

$(995) million

Reconciliation and Other Disclosures

The following table presents the reconciliation of the rollforward of the liability for future policy benefits to the condensed consolidated balance sheets as of June 30, 2026 and 2025 (dollars in millions):


	June 30,
	2026		2025
Liability for future policy benefits included in the rollforwards:
Traditional:
U.S. and Latin America	$	12,879	$	12,412
Canada	4,102		4,227
Europe, Middle East and Africa	1,453		1,291
Asia Pacific	3,081		2,815
Financial Solutions:
U.S. and Latin America	10,686		9,769
Canada	4,554		4,698
Europe, Middle East and Africa	9,735		8,138
Asia Pacific	16,901		13,173
Other long-duration contracts	252		145
Claims liability and incurred but not reported claims	6,409		5,913
Additional liability	583		125
Unearned revenue liability	778		825
Cost of reinsurance liability	1,619		—
Total liability for future policy benefits	$	73,032	$	63,531

The following table presents the amount of undiscounted and discounted expected future gross premiums and expected future benefit payments for the liability for future policy benefits included in the rollforwards as of June 30, 2026 and 2025 (dollars in millions):


	June 30,
	2026				2025
	Undiscounted		Discounted		Undiscounted		Discounted
Expected future gross premiums
Traditional:
U.S. and Latin America	$	192,638	$	85,097	$	184,475	$	84,387
Canada	57,093		22,462		55,343		21,992
Europe, Middle East and Africa	33,287		18,137		30,549		16,626
Asia Pacific	130,491		49,957		113,413		45,709
Financial Solutions:
U.S. and Latin America	5,138		3,197		2,601		1,645
Canada	5,121		3,410		5,918		3,864
Europe, Middle East and Africa	167,946		81,984		148,624		75,159
Asia Pacific	5,682		3,528		5,507		3,778

Expected future benefit payments
Traditional:
U.S. and Latin America	$	198,516	$	83,197	$	196,697	$	83,308
Canada	57,843		22,242		56,871		21,924
Europe, Middle East and Africa	33,958		17,871		30,625		16,197
Asia Pacific	124,436		42,427		109,518		38,866
Financial Solutions:
U.S. and Latin America	25,853		13,028		22,386		10,816
Canada	16,789		7,644		18,137		8,193
Europe, Middle East and Africa	182,279		90,458		160,718		82,029
Asia Pacific	42,941		17,609		30,889		15,147

The following table presents the amount of gross premiums and interest expense recognized in the condensed consolidated statements of income for the liability for future policy benefits included in the rollforwards for the six months ended June 30, 2026 and 2025 (dollars in millions):


	Gross Premiums				Interest Expense
	June 30,				June 30,
	2026		2025		2026		2025
Traditional:
U.S. and Latin America	$	3,188	$	3,245	$	361	$	353
Canada	577		552		111		106
Europe, Middle East and Africa	929		892		28		22
Asia Pacific	1,611		1,516		95		89
Financial Solutions:
U.S. and Latin America	265		96		267		245
Canada	89		97		113		108
Europe, Middle East and Africa	695		569		207		138
Asia Pacific	295		229		274		137
Total	$	7,649	$	7,196	$	1,456	$	1,198

Future Policy Benefits Reconciliation To Balance Sheet

Reconciliation and Other Disclosures


	June 30,
	2026		2025
Liability for future policy benefits included in the rollforwards:
Traditional:
U.S. and Latin America	$	12,879	$	12,412
Canada	4,102		4,227
Europe, Middle East and Africa	1,453		1,291
Asia Pacific	3,081		2,815
Financial Solutions:
U.S. and Latin America	10,686		9,769
Canada	4,554		4,698
Europe, Middle East and Africa	9,735		8,138
Asia Pacific	16,901		13,173
Other long-duration contracts	252		145
Claims liability and incurred but not reported claims	6,409		5,913
Additional liability	583		125
Unearned revenue liability	778		825
Cost of reinsurance liability	1,619		—
Total liability for future policy benefits	$	73,032	$	63,531

Undiscounted and Discounted Future Gross Premiums and Expected Future Benefits


	June 30,
	2026				2025
	Undiscounted		Discounted		Undiscounted		Discounted
Expected future gross premiums
Traditional:
U.S. and Latin America	$	192,638	$	85,097	$	184,475	$	84,387
Canada	57,093		22,462		55,343		21,992
Europe, Middle East and Africa	33,287		18,137		30,549		16,626
Asia Pacific	130,491		49,957		113,413		45,709
Financial Solutions:
U.S. and Latin America	5,138		3,197		2,601		1,645
Canada	5,121		3,410		5,918		3,864
Europe, Middle East and Africa	167,946		81,984		148,624		75,159
Asia Pacific	5,682		3,528		5,507		3,778

Expected future benefit payments
Traditional:
U.S. and Latin America	$	198,516	$	83,197	$	196,697	$	83,308
Canada	57,843		22,242		56,871		21,924
Europe, Middle East and Africa	33,958		17,871		30,625		16,197
Asia Pacific	124,436		42,427		109,518		38,866
Financial Solutions:
U.S. and Latin America	25,853		13,028		22,386		10,816
Canada	16,789		7,644		18,137		8,193
Europe, Middle East and Africa	182,279		90,458		160,718		82,029
Asia Pacific	42,941		17,609		30,889		15,147

Gross Premiums And Interest Expense Liability Future Policy Benefits


	Gross Premiums				Interest Expense
	June 30,				June 30,
	2026		2025		2026		2025
Traditional:
U.S. and Latin America	$	3,188	$	3,245	$	361	$	353
Canada	577		552		111		106
Europe, Middle East and Africa	929		892		28		22
Asia Pacific	1,611		1,516		95		89
Financial Solutions:
U.S. and Latin America	265		96		267		245
Canada	89		97		113		108
Europe, Middle East and Africa	695		569		207		138
Asia Pacific	295		229		274		137
Total	$	7,649	$	7,196	$	1,456	$	1,198