v3.26.1
Long-duration Contracts
 6 Months Ended
Jun. 30, 2026
Insurance [Abstract]  
Long-duration Contracts
7. Long-duration Contracts

Interest sensitive contract liabilities – Interest sensitive contract liabilities primarily include:
▪traditional deferred annuities (which include individual and group deferred annuities);
▪indexed annuities consisting of fixed indexed, index-linked variable annuities, and assumed indexed universal life without significant mortality risk;
▪funding agreements; and
▪other investment-type contracts comprising immediate annuities without significant mortality risk (which include pension group annuities and structured settlements without life contingencies), guaranteed investment contracts, and assumed endowments without significant mortality risks.

The following represents a rollforward of the policyholder account balance by product within interest sensitive contract liabilities. Where explicit policyholder account balances do not exist, the disaggregated rollforward represents the recorded reserve.

Six months ended June 30, 2026
(In millions, except percentages)Traditional deferred annuitiesIndexed annuitiesFunding agreementsOther investment-typeTotal
Balance at December 31, 2025$109,201 $105,317 $85,555 $8,821 $308,894 
Deposits17,694 8,656 14,249 1,433 42,032 
Policy charges(1)(426)— — (427)
Surrenders and withdrawals(4,402)(5,830)(47)(52)(10,331)
Benefit payments(747)(811)(7,020)(133)(8,711)
Interest credited2,644 2,329 1,900 133 7,006 
Foreign exchange(156)— (312)(177)(645)
Other — — (318)(64)(382)
Balance at June 30, 2026$124,233 $109,235 $94,007 $9,961 $337,436 
Weighted average crediting rate4.7 %2.8 %4.5 %3.1 %
Net amount at risk$423 $18,262 $— $15 
Cash surrender value116,670 101,270 — 6,777 

Six months ended June 30, 2025
(In millions, except percentages)Traditional deferred annuitiesIndexed annuitiesFunding agreementsOther investment-typeTotal
Balance at December 31, 2024$86,661 $97,861 $54,768 $8,030 $247,320 
Deposits15,357 8,868 21,676 502 46,403 
Policy charges(1)(382)— — (383)
Surrenders and withdrawals(2,913)(5,601)— (36)(8,550)
Benefit payments(703)(807)(3,906)(153)(5,569)
Interest credited2,098 1,376 1,456 110 5,040 
Foreign exchange337 7 1,021 437 1,802 
Other— — 213 (34)179 
Balance at June 30, 2025$100,836 $101,322 $75,228 $8,856 $286,242 
Weighted average crediting rate4.6 %2.7 %4.6 %2.7 %
Net amount at risk$420 $15,997 $— $39 
Cash surrender value94,874 93,191 — 7,191 

The following is a reconciliation of interest sensitive contract liabilities to the condensed consolidated balance sheets:

June 30,
(In millions)20262025
Traditional deferred annuities$124,233 $100,836 
Indexed annuities109,235 101,322 
Funding agreements94,007 75,228 
Other investment-type9,961 8,856 
Reconciling items1
7,157 5,996 
Interest sensitive contract liabilities$344,593 $292,238 
1 Reconciling items primarily include embedded derivatives in indexed annuities, unaccreted host contract adjustments on indexed annuities, negative VOBA, sales inducement liabilities, and wholly ceded universal life insurance contracts.
The following represents policyholder account balances by range of guaranteed minimum crediting rates (GMCR), as well as the related range of the difference between rates being credited to policyholders and the respective guaranteed minimums. Our funding agreements and other investment-type products provide us with little to no discretionary ability to change the rates of interest payable to the respective policyholder or institution and, as a result, those policyholder account balances are excluded from the following tables.

June 30, 2026
(In millions)At guaranteed minimum
1 basis point – 100 basis points above guaranteed minimum
Greater than 100 basis points above guaranteed minimum
Total
Traditional deferred annuities
< 2.0%
$4,884 $1,582 $101,354 $107,820 
2.0% – < 4.0%
5,317 467 6,080 11,864 
4.0% – < 6.0%
4,544 1 1 4,546 
6.0% and greater
3 — — 3 
Total traditional deferred annuities$14,748 $2,050 $107,435 $124,233 
Indexed annuities
< 2.0%
$1,383 $974 $3,610 $5,967 
2.0% – < 4.0%
3,395 194 — 3,589 
Total indexed annuities with GMCR4,778 1,168 3,610 9,556 
Other1
99,679 
Total indexed annuities$109,235 
1 Includes account value allocated to an indexed strategy or other amounts without a GMCR.

June 30, 2025
(In millions)At guaranteed minimum
1 basis point – 100 basis points above guaranteed minimum
Greater than 100 basis points above guaranteed minimum
Total
Traditional deferred annuities
< 2.0%
$5,071 $1,857 $80,432 $87,360 
2.0% – < 4.0%
5,962 610 2,598 9,170 
4.0% – < 6.0%
4,300 2 1 4,303 
6.0% and greater
3 — — 3 
Total traditional deferred annuities$15,336 $2,469 $83,031 $100,836 
Indexed annuities
< 2.0%
$1,544 $1,182 $3,280 $6,006 
2.0% – < 4.0%
4,070 37 — 4,107 
Total indexed annuities with GMCR5,614 1,219 3,280 10,113 
Other1
91,209 
Total indexed annuities$101,322 
1 Includes account value allocated to an indexed strategy or other amounts without a GMCR.
Future policy benefits – Future policy benefits consist primarily of payout annuities, including single premium immediate annuities with life contingencies (which include pension group annuities and structured settlements with life contingencies), and whole life insurance contracts.

The following is a rollforward by product within future policy benefits:

Six months ended June 30, 2026
(In millions, except percentages and years)Payout annuities with life contingenciesWhole lifeTotal
Present value of expected net premiums
Beginning balance, present value of expected net premiums$— $1,402 $1,402 
Effect of changes in discount rate assumptions— (25)(25)
Effect of foreign exchange on the change in discount rate assumptions— 1 1 
Beginning balance at original discount rate— 1,378 1,378 
Effect of actual to expected experience— (8)(8)
Adjusted balance— 1,370 1,370 
Issuances— 7 7 
Interest accrual— 25 25 
Net premium collected— (161)(161)
Foreign exchange— (25)(25)
Ending balance at original discount rate— 1,216 1,216 
Effect of foreign exchange on the change in discount rate assumptions— (1)(1)
Ending balance, present value of expected net premiums$— $1,215 $1,215 
Present value of expected future policy benefits
Beginning balance, present value of expected future policy benefits$42,058 $3,795 $45,853 
Effect of changes in discount rate assumptions5,941 1,036 6,977 
Effect of foreign exchange on the change in discount rate assumptions21 (47)(26)
Beginning balance at original discount rate48,020 4,784 52,804 
Effect of actual to expected experience(49)34 (15)
Adjusted balance47,971 4,818 52,789 
Issuances273 7 280 
Interest accrual861 84 945 
Benefit payments(2,158)(202)(2,360)
Foreign exchange(13)(110)(123)
Ending balance at original discount rate46,934 4,597 51,531 
Effect of changes in discount rate assumptions(6,531)(1,181)(7,712)
Effect of foreign exchange on the change in discount rate assumptions(15)87 72 
Ending balance, present value of expected future policy benefits40,388 3,503 43,891 
Less: Present value of expected net premiums— 1,215 1,215 
Net future policy benefits40,388 2,288 42,676 
Less: Reinsurance recoverable— 5 5 
Net future policy benefits, net of reinsurance$40,388 $2,283 $42,671 
Weighted-average liability duration (in years)
9.219.5
Weighted-average interest accretion rate3.7 %5.2 %
Weighted-average current discount rate5.5 %6.5 %
Expected future gross premiums, undiscounted$— $1,715 
Expected future gross premiums, discounted1
— 1,380 
Expected future benefit payments, undiscounted69,045 10,554 
1 Discounted at the original discount rate.
Six months ended June 30, 2025
(In millions, except percentages and years)Payout annuities with life contingenciesWhole lifeTotal
Present value of expected net premiums
Beginning balance, present value of expected net premiums$— $880 $880 
Effect of changes in discount rate assumptions— (30)(30)
Effect of foreign exchange on the change in discount rate assumptions— 2 2 
Beginning balance at original discount rate— 852 852 
Effect of actual to expected experience— (1)(1)
Adjusted balance— 851 851 
Interest accrual— 10 10 
Net premium collected— (92)(92)
Foreign exchange— 76 76 
Ending balance at original discount rate— 845 845 
Effect of changes in discount rate assumptions— 23 23 
Ending balance, present value of expected net premiums$— $868 $868 
Present value of expected future policy benefits
Beginning balance, present value of expected future policy benefits$42,261 $2,711 $44,972 
Effect of changes in discount rate assumptions7,378 206 7,584 
Effect of foreign exchange on the change in discount rate assumptions(5)(1)(6)
Beginning balance at original discount rate49,634 2,916 52,550 
Effect of actual to expected experience(64)2 (62)
Adjusted balance49,570 2,918 52,488 
Issuances133 — 133 
Interest accrual879 35 914 
Benefit payments(2,238)(49)(2,287)
Foreign exchange75 270 345 
Ending balance at original discount rate48,419 3,174 51,593 
Effect of changes in discount rate assumptions(6,465)(553)(7,018)
Effect of foreign exchange on the change in discount rate assumptions(28)(24)(52)
Ending balance, present value of expected future policy benefits41,926 2,597 44,523 
Less: Present value of expected net premiums— 868 868 
Net future policy benefits$41,926 $1,729 $43,655 
Weighted-average liability duration (in years)
9.429.4
Weighted-average interest accretion rate3.7 %4.8 %
Weighted-average current discount rate5.3 %5.1 %
Expected future gross premiums, undiscounted$— $1,064 
Expected future gross premiums, discounted1
— 919 
Expected future benefit payments, undiscounted70,754 10,085 
1 Discounted at the original discount rate.

The following is a reconciliation of future policy benefits to the condensed consolidated balance sheets:

June 30,
(In millions)20262025
Payout annuities with life contingencies$40,388 $41,926 
Whole life2,288 1,729 
Reconciling items1
5,565 5,745 
Future policy benefits$48,241 $49,400 
1 Reconciling items primarily include the deferred profit liability and negative VOBA associated with the liability for future policy benefits. Additionally, it includes term life reserves, fully ceded whole life reserves, and reserves for immaterial lines of business including accident and health and disability, as well as other insurance benefit reserves for no-lapse guarantees with universal life contracts, all of which are fully ceded.
The following is a reconciliation of premiums and interest expense relating to future policy benefits to the condensed consolidated statements of income (loss):

PremiumsInterest expense
Six months ended June 30,Six months ended June 30,
(In millions)2026202520262025
Payout annuities with life contingencies$199 $122 $861 $879 
Whole life177 101 59 25 
Reconciling items1
11 11 — — 
Total$387 $234 $920 $904 
1 Reconciling items primarily relate to immaterial lines of business including term life, fully ceded whole life, and accident and health and disability.

Significant assumptions and inputs to the calculation of future policy benefits for payout annuities with life contingencies include policyholder demographic data, assumptions for policyholder longevity and policyholder utilization for contracts with deferred lives, and discount rates. For whole life products, significant assumptions and inputs include policyholder demographic data, assumptions for mortality, morbidity, and lapse and discount rates.

We base certain key assumptions related to policyholder behavior on industry standard data adjusted to align with actual company experience, if necessary. At least annually, we review all significant cash flow assumptions and update as necessary, unless emerging experience indicates a more frequent review is necessary. The discount rate reflects market observable inputs from upper-medium grade fixed income instrument yields and is interpolated, where necessary, to conform to the duration of our liabilities.

During the six months ended June 30, 2026, the present value of expected future policy benefits decreased by $1,962 million, which was driven by $2,360 million of benefit payments and a $710 million change in discount rate assumptions related to an increase in market observable rates, partially offset by $945 million of interest accruals and $280 million of issuances.

During the six months ended June 30, 2025, the present value of expected future policy benefits decreased by $449 million, which was driven by $2,287 million of benefit payments, offset by $914 million of interest accruals, a $573 million change in discount rate assumptions related to a decrease in market observable rates, a $345 million change in foreign exchange and $133 million of issuances, primarily pension group annuities.

The following is a summary of remeasurement gains (losses) included within future policy and other policy benefits on the condensed consolidated statements of income (loss):
Six months ended June 30,
(In millions)20262025
Reserves$7 $61 
Deferred profit liability31 2 
Negative VOBA(6)(3)
Total remeasurement gains (losses)$32 $60 

During the six months ended June 30, 2026 and 2025, we recorded reserve increases of $12 million and $8 million, respectively, on the condensed consolidated statements of income (loss) as a result of the present value of benefits and expenses exceeding the present value of gross premiums.
Market risk benefits – We issue and reinsure traditional deferred and indexed annuity products that contain guaranteed lifetime withdrawal benefit (GLWB) and guaranteed minimum death benefit (GMDB) riders that meet the criteria to be classified as market risk benefits.

The following is a rollforward of net market risk benefit liabilities by product:
Six months ended June 30, 2026
(In millions, except years)Traditional deferred annuitiesIndexed annuitiesTotal
Balance at December 31, 2025$205 $4,511 $4,716 
Effect of changes in instrument-specific credit risk(5)(255)(260)
Balance, beginning of period, before changes in instrument-specific credit risk200 4,256 4,456 
Issuances— 193 193 
Interest accrual4 95 99 
Attributed fees collected1 212 213 
Benefit payments(2)(47)(49)
Effect of changes in interest rates(2)(24)(26)
Effect of changes in equity— (62)(62)
Effect of actual policyholder behavior compared to expected behavior2 64 66 
Balance, end of period, before changes in instrument-specific credit risk203 4,687 4,890 
Effect of changes in instrument-specific credit risk4 220 224 
Balance at June 30, 2026207 4,907 5,114 
Less: Reinsurance recoverable— 88 88 
Balance at June 30, 2026, net of reinsurance
$207 $4,819 $5,026 
Net amount at risk$423 $18,262 
Weighted-average attained age of contract holders (in years)
7769

Six months ended June 30, 2025
(In millions, except years)Traditional deferred annuitiesIndexed annuitiesTotal
Balance at December 31, 2024$190 $3,525 $3,715 
Effect of changes in instrument-specific credit risk(3)(154)(157)
Balance, beginning of period, before changes in instrument-specific credit risk187 3,371 3,558 
Issuances— 201 201 
Interest accrual4 89 93 
Attributed fees collected1 189 190 
Benefit payments(3)(30)(33)
Effect of changes in interest rates3 (29)(26)
Effect of actual policyholder behavior compared to expected behavior— 53 53 
Balance, end of period, before changes in instrument-specific credit risk192 3,844 4,036 
Effect of changes in instrument-specific credit risk3 173 176 
Balance at June 30, 2025195 4,017 4,212 
Less: Reinsurance recoverable— 50 50 
Balance at June 30, 2025, net of reinsurance
$195 $3,967 $4,162 
Net amount at risk$420 $15,997 
Weighted-average attained age of contract holders (in years)
7669

The following is a reconciliation of market risk benefits to the condensed consolidated balance sheets. Market risk benefit assets are included in other assets on the condensed consolidated balance sheets.
June 30, 2026June 30, 2025
(In millions)AssetLiabilityNet liabilityAssetLiabilityNet liability
Traditional deferred annuities$— $207 $207 $— $195 $195 
Indexed annuities169 5,076 4,907 277 4,294 4,017 
Total$169 $5,283 $5,114 $277 $4,489 $4,212 
During the six months ended June 30, 2026, net market risk benefit liabilities increased by $398 million, which was primarily driven by $213 million in fees collected from policyholders, $193 million of issuances and $99 million of interest accruals, partially offset by $62 million of changes in equity and $49 million of benefit payments.

During the six months ended June 30, 2025, net market risk benefit liabilities increased by $497 million, which was primarily driven by $201 million of issuances, $190 million in fees collected from policyholders and $93 million of interest accruals.

The determination of the fair value of market risk benefits requires the use of inputs related to fees and assessments and assumptions in determining the projected benefits in excess of the projected account balance. Judgment is required for both economic and actuarial assumptions, which can be either observable or unobservable, that impact future policyholder account growth.

Economic assumptions include interest rates and implied volatilities throughout the duration of the liability. For indexed annuities, assumptions also include projected equity returns which impact cash flows attributable to indexed strategies, implied equity volatilities, expected index credits on the next policy anniversary date and future equity option costs. Assumptions related to the level of option budgets used for determining the future equity option costs and the impact on future policyholder account value growth are considered unobservable inputs.

Policyholder behavior assumptions are unobservable inputs and are established using accepted actuarial valuation methods to estimate withdrawals (surrender rate) and income rider utilization. Assumptions are generally based on industry data and pricing assumptions which are updated for actual experience, if necessary. Actual experience may be limited for recently issued products.

All inputs are used to project excess benefits and fees over a range of risk-neutral, stochastic interest rate scenarios. For indexed annuities, stochastic equity return scenarios are also included within the range. A risk margin is incorporated within the discount rate to reflect uncertainty in the projected cash flows such as variations in policyholder behavior, as well as a credit spread to reflect nonperformance risk, which is considered an unobservable input. We use our public credit rating relative to the US Treasury curve as of the valuation date to reflect our nonperformance risk in the fair value estimate of market risk benefits.

The following summarizes the unobservable inputs for market risk benefits:
June 30, 2026
(In millions, except percentages)Fair valueValuation techniqueUnobservable inputsMinimumMaximumWeighted averageImpact of an increase in the input on fair value
Market risk benefits, net
$5,114 Discounted cash flowNonperformance risk0.3 %1.1 %0.9 %
1
Decrease
Option budget0.5 %5.9 %2.7 %
2
Decrease
Surrender rate4.0 %7.5 %5.1 %
2
Decrease
Utilization rate28.6 %95.0 %86.7 %
3
Increase
June 30, 2025
(In millions, except percentages)
Fair value
Valuation techniqueUnobservable inputsMinimumMaximumWeighted averageImpact of an increase in the input on fair value
Market risk benefits, net
$4,212 Discounted cash flowNonperformance risk0.3 %1.1 %1.0 %
1
Decrease
Option budget0.5 %6.0 %2.5 %
2
Decrease
Surrender rate3.1 %6.7 %4.4 %
2
Decrease
Utilization rate28.6 %95.0 %85.4 %
3
Increase
1 The nonperformance risk weighted average is based on the cash flows underlying the market risk benefit reserve.
2 The option budget and surrender rate weighted averages are calculated based on projected account values.
3 The utilization of GLWB withdrawals represents the estimated percentage of policyholders that are expected to use their income rider over the duration of the contract, with the weighted average based on current account values.