| Summary of life, annuity and health insurance benefits liabilities |
A summary of our long-duration life, annuity and health insurance benefits liabilities disaggregated by our principal product categories follows (in millions).
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June 30, |
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2026 |
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|
2025 |
|
Periodic payment annuity (“Annuities”) |
$ |
10,305 |
|
|
$ |
10,457 |
|
Life and health |
|
4,529 |
|
|
|
4,504 |
|
Other |
|
2,904 |
|
|
|
2,904 |
|
|
$ |
17,738 |
|
|
$ |
17,865 |
|
|
| Summary of changes in discounted present values of expected future policy benefits and expected future net premiums |
Net premiums represent the portion of expected gross premiums that are required to provide for future policy benefits and variable expenses.
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Annuities |
|
|
Life and health |
|
|
2026 |
|
|
2025 |
|
|
2026 |
|
|
2025 |
|
Expected future policy benefits: |
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|
|
|
|
|
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|
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Balance at the beginning of the year |
$ |
10,441 |
|
|
$ |
10,276 |
|
|
$ |
48,124 |
|
|
$ |
43,784 |
|
Balance at the beginning of the year - original discount rates |
|
11,930 |
|
|
|
11,757 |
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|
|
61,247 |
|
|
|
55,170 |
|
Effects of cash flow assumption changes |
|
— |
|
|
|
— |
|
|
|
(283 |
) |
|
|
(98 |
) |
Effects of actual versus expected experience |
|
3 |
|
|
|
(20 |
) |
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|
22 |
|
|
|
246 |
|
Change in benefits, net |
|
(247 |
) |
|
|
(240 |
) |
|
|
(721 |
) |
|
|
(887 |
) |
Interest accrual |
|
281 |
|
|
|
277 |
|
|
|
714 |
|
|
|
646 |
|
Foreign currency effect |
|
(20 |
) |
|
|
136 |
|
|
|
332 |
|
|
|
1,489 |
|
Balance at June 30 - original discount rates |
|
11,947 |
|
|
|
11,910 |
|
|
|
61,311 |
|
|
|
56,566 |
|
Effects of changes in discount rate assumptions |
|
(1,642 |
) |
|
|
(1,453 |
) |
|
|
(14,571 |
) |
|
|
(12,232 |
) |
Balance at June 30 |
$ |
10,305 |
|
|
$ |
10,457 |
|
|
$ |
46,740 |
|
|
$ |
44,334 |
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|
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Expected future net premiums: |
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|
|
|
|
|
|
|
|
|
Balance at the beginning of the year |
|
|
|
|
|
|
$ |
43,584 |
|
|
$ |
39,294 |
|
Balance at the beginning of the year - original discount rates |
|
|
|
|
|
|
|
55,359 |
|
|
|
49,500 |
|
Effects of cash flow assumption changes |
|
|
|
|
|
|
|
(201 |
) |
|
|
(66 |
) |
Effects of actual versus expected experience |
|
|
|
|
|
|
|
(7 |
) |
|
|
204 |
|
Change in premiums, net |
|
|
|
|
|
|
|
(744 |
) |
|
|
(884 |
) |
Interest accrual |
|
|
|
|
|
|
|
646 |
|
|
|
579 |
|
Foreign currency effect |
|
|
|
|
|
|
|
290 |
|
|
|
1,395 |
|
Balance at June 30 - original discount rates |
|
|
|
|
|
|
|
55,343 |
|
|
|
50,728 |
|
Effects of changes in discount rate assumptions |
|
|
|
|
|
|
|
(13,132 |
) |
|
|
(10,898 |
) |
Balance at June 30 |
|
|
|
|
|
|
$ |
42,211 |
|
|
$ |
39,830 |
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Liabilities for future policy benefits: |
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|
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Balance at June 30 |
$ |
10,305 |
|
|
$ |
10,457 |
|
|
$ |
4,529 |
|
|
$ |
4,504 |
|
Reinsurance recoverables |
|
— |
|
|
|
— |
|
|
|
(46 |
) |
|
|
(51 |
) |
Balance at June 30, net of reinsurance recoverables |
$ |
10,305 |
|
|
$ |
10,457 |
|
|
$ |
4,483 |
|
|
$ |
4,453 |
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| Summary of Other Information Relating to Long-Duration Insurance Liabilities |
Other information relating to our long-duration insurance liabilities follows (dollars in millions).
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Annuities |
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|
Life and health |
|
|
June 30 |
|
|
June 30 |
|
|
2026 |
|
|
2025 |
|
|
2026 |
|
|
2025 |
|
Undiscounted expected future gross premiums |
$ |
— |
|
|
$ |
— |
|
|
$ |
114,003 |
|
|
$ |
103,580 |
|
Discounted expected future gross premiums |
|
— |
|
|
|
— |
|
|
|
67,028 |
|
|
|
60,951 |
|
Undiscounted expected future benefits |
|
32,384 |
|
|
|
30,670 |
|
|
|
101,866 |
|
|
|
94,173 |
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|
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|
|
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|
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|
Weighted average discount rate |
|
5.9 |
% |
|
|
5.7 |
% |
|
|
5.4 |
% |
|
|
5.2 |
% |
Weighted average accretion rate |
|
4.8 |
% |
|
|
4.8 |
% |
|
|
2.7 |
% |
|
|
2.7 |
% |
Weighted average duration |
16 years |
|
|
16 years |
|
|
14 years |
|
|
13 years |
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