v3.26.1
Future Policy Benefits
 6 Months Ended
Jun. 30, 2026
Insurance [Abstract]  
Future Policy Benefits
16. Future Policy Benefits
The reconciliation of the balances described in the table below to “Future policy benefits” in the Condensed Consolidated Statements of Financial Position is as follows.
June 30, 2026December 31, 2025
(Dollars in millions)
Future policy benefits:
Annuities$7,021 $7,142 
Life Insurance1,934 1,917 
Deferred profit liability:
Annuities82 76 
Life Insurance101 99 
Other contracts and VOBA liability1,741 1,728 
Total future policy benefits$10,879 $10,962 
Future Policy Benefits
The balances and changes in the liability for future policy benefits are as follows:
Six Months Ended June 30,
20262025
AnnuitiesLife
Insurance		TotalAnnuitiesLife
Insurance		Total
(Dollars in millions)
Present Value of Expected Net Premiums:
Balance, beginning of period$— $2,183 $2,183 $— $2,353 $2,353 
Beginning balance at original discount rate— 2,302 2,302 — 2,507 2,507 
Effect of changes in cash flow assumptions (1) — (17)(17)— 65 65 
Effect of actual variances from expected experience2 (7)(5)(1)(55)(56)
Adjusted beginning of period balance2 2,278 2,280 (1)2,517 2,516 
Issuances180 12 192 666 5 671 
Interest accrual1 46 47 5 48 53 
Net premiums collected(186)(158)(344)(673)(148)(821)
Derecognitions (lapses and withdrawals)3 — 3 3 — 3 
Ending balance at original discount rate— 2,178 2,178 — 2,422 2,422 
Effect of changes in discount rate assumptions— (107)(107)— (114)(114)
Balance, end of period$— $2,071 $2,071 $— $2,308 $2,308 
Present Value of Expected Future Policy Benefits:
Balance, beginning of period$7,142 $4,100 $11,242 $5,532 $4,169 $9,701 
Beginning balance at original discount rate7,135 4,459 11,594 5,668 4,601 10,269 
Effect of changes in cash flow assumptions (1)31 (53)(22)6 77 83 
Effect of actual variances from expected experience(43)11 (32)(34)(56)(90)
Adjusted beginning of period balance7,123 4,417 11,540 5,640 4,622 10,262 
Issuances188 12 200 669 5 674 
Interest accrual154 90 244 138 89 227 
Benefit payments(334)(177)(511)(265)(153)(418)
Derecognitions (lapses and withdrawals)9 — 9 28 — 28 
Foreign currency translation(21)— (21)107 — 107 
Ending balance at original discount rate7,119 4,342 11,461 6,317 4,563 10,880 
Effect of changes in discount rate assumptions(98)(337)(435)(45)(360)(405)
Balance, end of period$7,021 $4,005 $11,026 $6,272 $4,203 $10,475 
Liability for future policy benefits$7,021 $1,934 $8,955 $6,272 $1,895 $8,167 
Less: Reinsurance recoverables(2)(1,266)(1,268)(1)(1,311)(1,312)
Net liability for future policy benefits, after reinsurance recoverables$7,019 $668 $7,687 $6,271 $584 $6,855 
Weighted-average liability duration of future policy benefits (years)8 years13 years6 years14 years
Weighted average interest accretion rate5.36 %4.75 %5.28 %4.77 %
Weighted average current discount rate5.51 %5.67 %5.36 %5.69 %
(1)For the six months ended June 30, 2026 and 2025, the Company recognized liability remeasurement losses of $60 million and $31 million, respectively, from the net effect of the changes in cash flow assumptions, which were included in “Policyholder benefits and claims incurred” in the Condensed Consolidated Statements of Operations.
The amounts of undiscounted and discounted expected gross premiums and future benefit payments follow:
June 30, 2026June 30, 2025
UndiscountedDiscountedUndiscountedDiscounted
(Dollars in millions)
Annuities
Expected future benefit payments$12,266 $7,021 $10,620 $6,245 
Expected future gross premiums— — — — 
Life Insurance
Expected future benefit payments8,161 4,005 8,675 4,203 
Expected future gross premiums4,978 2,938 5,482 3,259 
Total
Expected future benefit payments20,427 11,026 19,295 10,448 
Expected future gross premiums4,978 2,938 5,482 3,259 
The amount of revenue and interest recognized in the Condensed Consolidated Statements of Operations follows:
Six Months Ended June 30,
2026202520262025
Gross Premiums
or Assessments		Interest
Expense
(Dollars in millions)
Annuities$192 $687 $153 $118 
Life Insurance185 206 44 41