Future Policy Benefits and Claims (Tables)
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9 Months Ended |
Sep. 30, 2026 |
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| Future Policy Benefits and Claims |
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| Disaggregated Future Policy Benefits and Claims amounts and reconciliation (Table) |
| | | | | | | | | September 30, 2026 | | December 31, 2025 | | | | (in millions) | Liability for future policy benefits by segment (1): | | | | | | | Retirement and Income Solutions: | | | | | | | Pension risk transfer | | $ | 26,068.4 | | $ | 27,349.3 | Individual fixed income annuities | | | 3,913.3 | | | 4,367.4 | Total Retirement and Income Solutions | | | 29,981.7 | | | 31,716.7 | Principal Asset Management – International Pension: | | | | | | | Latin America: | | | | | | | Individual fixed income annuities (2) | | | — | | | 4,600.5 | Benefits and Protection: | | | | | | | Specialty Benefits: | | | | | | | Individual disability | | | 1,856.5 | | | 1,994.2 | Life Insurance: | | | | | | | Term life | | | 1,523.3 | | | 1,515.7 | Total Benefits and Protection | | | 3,379.8 | | | 3,509.9 | Corporate: | | | | | | | Long-term care insurance | | | 142.1 | | | 166.7 | Total liability for future policy benefits | | | 33,503.6 | | | 39,993.8 | | | | | | | | Additional liability for certain benefit features by segment (3): | | | | | | | Benefits and Protection – Life Insurance: | | | | | | | Universal life | | | 7,029.3 | | | 6,604.8 | Total additional liability for certain benefit features | | | 7,029.3 | | | 6,604.8 | | | | | | | | Reconciling items: | | | | | | | Participating contracts | | | 2,695.6 | | | 2,784.3 | Short-duration contracts | | | 1,139.1 | | | 1,205.2 | Cost of reinsurance liability | | | 939.7 | | | 971.4 | Reinsurance recoverable liability | | | 19.0 | | | 23.5 | Other (4) | | | 75.4 | | | 166.7 | Future policy benefits and claims per consolidated statements of financial position | | $ | 45,401.7 | | $ | 51,749.7 |
| (1) | Amounts include the deferred profit liability. |
| (2) | The business was sold in third quarter 2026. |
| (3) | Includes reserves on certain long-duration contracts where benefit features result in gains in early years followed by losses in later years. |
| (4) | Includes other miscellaneous reserves and the impact of unrealized gains (losses) on the additional liability for certain benefit features. |
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| Schedule of Liability for Unpaid Claims (Table) |
| | | | | | | | | For the nine months ended September 30, | | | 2026 | | 2025 | | | | (in millions) | Balance at beginning of period | | $ | 1,342.4 | | $ | 1,379.9 | Less: reinsurance recoverable | | | 62.6 | | | 61.2 | Net balance at beginning of period | | | 1,279.8 | | | 1,318.7 | Balance of operations acquired | | | 7.2 | | | — | Incurred: | | | | | | | Current year | | | 1,379.6 | | | 1,368.5 | Prior years | | | (112.6) | | | (101.9) | Total incurred | | | 1,267.0 | | | 1,266.6 | Payments: | | | | | | | Current year | | | 1,007.5 | | | 984.3 | Prior years | | | 304.9 | | | 317.7 | Total payments | | | 1,312.4 | | | 1,302.0 | Net balance at end of period | | | 1,241.6 | | | 1,283.3 | Plus: reinsurance recoverable | | | 60.2 | | | 61.1 | Balance at end of period | | $ | 1,301.8 | | $ | 1,344.4 |
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| Summary of gross premiums or assessments and interest accretion recognized by segment (Table) |
| | | | | | | | | | | | | | | Gross premiums or assessments (1) | | | For the three months ended | | For the nine months ended | | | September 30, | | September 30, | | | 2026 | | 2025 | | 2026 | | 2025 | | | | (in millions) | Retirement and Income Solutions: | | | | | | | | | | | | | Pension risk transfer (2) | | $ | 888.5 | | $ | 560.0 | | $ | 1,541.9 | | $ | 1,810.1 | Individual fixed income annuities | | | 4.0 | | | 9.1 | | | 16.0 | | | 23.2 | Total Retirement and Income Solutions | | | 892.5 | | | 569.1 | | | 1,557.9 | | | 1,833.3 | Principal Asset Management – International Pension: | | | | | | | | | | | | | Latin America: | | | | | | | | | | | | | Individual fixed income annuities (3) | | | — | | | 0.5 | | | — | | | 6.4 | Benefits and Protection: | | | | | | | | | | | | | Specialty Benefits: | | | | | | | | | | | | | Individual disability | | | 170.4 | | | 169.0 | | | 496.3 | | | 489.4 | Life Insurance: | | | | | | | | | | | | | Universal life | | | 176.0 | | | 182.1 | | | 536.6 | | | 536.3 | Term life | | | 178.9 | | | 176.9 | | | 531.3 | | | 520.9 | Total Benefits and Protection | | | 525.3 | | | 528.0 | | | 1,564.2 | | | 1,546.6 | Corporate: | | | | | | | | | | | | | Long-term care insurance | | | 1.2 | | | 1.2 | | | 4.0 | | | 4.1 | Total per consolidated statements of operations | | $ | 1,419.0 | | $ | 1,098.8 | | $ | 3,126.1 | | $ | 3,390.4 |
| (1) | Gross premiums are included within premiums and other considerations on the consolidated statements of operations. Assessments, which are only applicable to the Life Insurance – Universal life level of aggregation, are included within fees and other revenues on the consolidated statements of operations. |
| (2) | Since premium received from pension risk transfer products is generally in the form of single payments, the level of premiums can fluctuate depending on the number of large-scale annuity sales in a particular quarter. |
| (3) | The business was sold in third quarter 2026. |
| | | | | | | | | | | | | | | Interest accretion (1) | | | For the three months ended | | For the nine months ended | | | September 30, | | September 30, | | | 2026 | | 2025 | | 2026 | | 2025 | | | | | (in millions) | Retirement and Income Solutions: | | | | | | | | | | | | | Pension risk transfer | | $ | 327.6 | | $ | 310.8 | | $ | 978.2 | | $ | 919.4 | Individual fixed income annuities | | | 46.3 | | | 49.0 | | | 140.9 | | | 148.9 | Total Retirement and Income Solutions | | | 373.9 | | | 359.8 | | | 1,119.1 | | | 1,068.3 | Principal Asset Management – International Pension: | | | | | | | | | | | | | Latin America: | | | | | | | | | | | | | Individual fixed income annuities (2) | | | 32.4 | | | 60.9 | | | 228.7 | | | 228.1 | Benefits and Protection: | | | | | | | | | | | | | Specialty Benefits: | | | | | | | | | | | | | Individual disability | | | 27.8 | | | 26.4 | | | 81.8 | | | 78.4 | Life Insurance: | | | | | | | | | | | | | Universal life | | | 77.6 | | | 71.2 | | | 227.9 | | | 209.5 | Term life | | | 19.1 | | | 17.3 | | | 55.5 | | | 48.9 | Total Benefits and Protection | | | 124.5 | | | 114.9 | | | 365.2 | | | 336.8 | Corporate: | | | | | | | | | | | | | Long-term care insurance | | | 2.2 | | | 2.4 | | | 6.9 | | | 7.1 | Total per consolidated statements of operations | | $ | 533.0 | | $ | 538.0 | | $ | 1,719.9 | | $ | 1,640.3 |
(1)Interest accretion is included within benefits, claims and settlement expenses on the consolidated statements of operations. (2) | Includes inflation adjustments included within the liability for future policy benefits rollforward for interest accretion. The business was sold in third quarter 2026. |
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| Summary of amounts of expected undiscounted future benefit payments, expected undiscounted future gross premiums and expected discounted future gross premiums (Table) |
| | | | | | | | | September 30, 2026 | | December 31, 2025 | | | | (in millions) | Retirement and Income Solutions: | | | | | | | Pension risk transfer | | | | | | | Expected undiscounted future benefit payments | | $ | 44,132.8 | | $ | 42,601.7 | | | | | | | | Individual fixed income annuities | | | | | | | Expected undiscounted future benefit payments | | $ | 5,915.7 | | $ | 6,221.3 | | | | | | | | Principal Asset Management – International Pension: | | | | | | | Latin America: | | | | | | | Individual fixed income annuities (1) | | | | | | | Expected undiscounted future benefit payments | | $ | — | | $ | 5,945.8 | | | | | | | | Benefits and Protection – Specialty Benefits: | | | | | | | Individual disability | | | | | | | Expected discounted future gross premiums | | $ | 5,297.7 | | $ | 5,683.8 | Expected undiscounted future gross premiums | | $ | 8,764.3 | | $ | 8,763.7 | Expected undiscounted future benefit payments | | $ | 10,246.3 | | $ | 9,951.7 | | | | | | | | Benefits and Protection – Life Insurance: | | | | | | | Term life | | | | | | | Expected discounted future gross premiums | | $ | 6,474.1 | | $ | 6,929.2 | Expected undiscounted future gross premiums | | $ | 12,133.1 | | $ | 11,960.4 | Expected undiscounted future benefit payments | | $ | 9,852.2 | | $ | 9,653.9 | | | | | | | | Corporate: | | | | | | | Long-term care insurance | | | | | | | Expected discounted future gross premiums | | $ | 31.8 | | $ | 37.4 | Expected undiscounted future gross premiums | | $ | 47.7 | | $ | 52.7 | Expected undiscounted future benefit payments | | $ | 322.7 | | $ | 363.1 |
| (1) | The business was sold in third quarter 2026. |
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| Summary of weighted-average rates of interest accretion and current discount (Table) |
| | | | | | | | | | | | Interest accretion rate | | Current discount rate | | | | September 30, 2026 | | December 31, 2025 | | September 30, 2026 | | December 31, 2025 | | Retirement and Income Solutions: | | | | | | | | | | Pension risk transfer | | 4.77 | % | 4.70 | % | 6.33 | % | 5.28 | % | Individual fixed income annuities | | 4.22 | % | 4.22 | % | 6.25 | % | 5.16 | % | Principal Asset Management – International Pension: | | | | | | | | | | Latin America: | | | | | | | | | | Individual fixed income annuities (1) | | — | % | 4.19 | % | — | % | 2.78 | % | Benefits and Protection: | | | | | | | | | | Specialty Benefits: | | | | | | | | | | Individual disability | | 3.81 | % | 3.84 | % | 6.43 | % | 5.43 | % | Life Insurance: | | | | | | | | | | Universal life | | 4.74 | % | 4.74 | % | See note | (2) | See note | (2) | Term life | | 4.81 | % | 4.81 | % | 6.10 | % | 4.91 | % | Corporate: | | | | | | | | | | Long-term care insurance | | 6.16 | % | 6.16 | % | 6.36 | % | 5.36 | % |
| (1) | The interest accretion rate and current discount rate are Chilean real rates, excluding inflation, in the local currency. The business was sold in third quarter 2026. |
| (2) | The additional liability for certain benefit features for Life Insurance – Universal life is measured using the discount rate at contract inception. Therefore, the current discount rate is not applicable for this product. |
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| Retirement and Income Solutions |
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| Future Policy Benefits and Claims |
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| Summary of balances and the changes in the present value for expected net premiums and expected future policy benefits (Table) |
| | | | | | | | | | | | | | | For the nine months ended | | For the year ended | | | September 30, 2026 | | December 31, 2025 | | | Pension | | Individual | | Pension | | Individual | | | risk | | fixed income | | risk | | fixed income | | | transfer | | annuities | | transfer | | annuities | | | | ($ in millions) | Present value of expected future policy benefit payments | | | | | | | | | | | | | Balance at beginning of period | | $ | 27,349.3 | | $ | 4,367.4 | | $ | 24,958.1 | | $ | 4,504.6 | Effect of changes in discount rate assumptions at beginning of period | | | 1,294.3 | | | 297.6 | | | 1,938.8 | | | 420.4 | Balance at beginning of period at original discount rate | | | 28,643.6 | | | 4,665.0 | | | 26,896.9 | | | 4,925.0 | Effect of actual variances from expected experience | | | 2.2 | | | 2.4 | | | (17.9) | | | 2.3 | Adjusted beginning of period balance at original discount rate | | | 28,645.8 | | | 4,667.4 | | | 26,879.0 | | | 4,927.3 | Interest accrual | | | 978.2 | | | 140.9 | | | 1,234.2 | | | 197.2 | Benefit payments | | | (1,929.5) | | | (360.5) | | | (2,442.8) | | | (490.0) | Issuances | | | 1,547.9 | | | 15.8 | | | 2,973.2 | | | 30.5 | Balance at end of period at original discount rate | | | 29,242.4 | | | 4,463.6 | | | 28,643.6 | | | 4,665.0 | Effect of changes in discount rate assumptions at end of period | | | (3,174.0) | | | (550.3) | | | (1,294.3) | | | (297.6) | Future policy benefits | | | 26,068.4 | | | 3,913.3 | | | 27,349.3 | | | 4,367.4 | Reinsurance impact | | | — | | | (3,854.7) | | | — | | | (4,310.3) | Future policy benefits after reinsurance | | $ | 26,068.4 | | $ | 58.6 | | $ | 27,349.3 | | $ | 57.1 | | | | | | | | | | | | | | Weighted-average duration for future policy benefits (years) (1) | | | 7.6 | | | 6.7 | | | 7.9 | | | 7.1 |
| (1) | Represents the average of the cohort-level duration of the benefit cash flows weighted by the reserve balance for each cohort. |
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| Principal Asset Management | International Pension |
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| Future Policy Benefits and Claims |
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| Summary of balances and the changes in the present value for expected net premiums and expected future policy benefits (Table) |
| | | | | | | | | For the nine months ended | | For the year ended | | | September 30, 2026 | | December 31, 2025 | | | | ($ in millions) | Present value of expected future policy benefit payments | | | | | | | Balance at beginning of period | | $ | 4,600.5 | | $ | 4,126.9 | Effect of changes in discount rate assumptions at beginning of period | | | (493.5) | | | (368.4) | Balance at beginning of period at original discount rate | | | 4,107.0 | | | 3,758.5 | Effect of actual variances from expected experience | | | 0.7 | | | (0.4) | Adjusted beginning of period balance at original discount rate | | | 4,107.7 | | | 3,758.1 | Interest accrual (1) | | | 228.7 | | | 293.1 | Benefit payments | | | (241.0) | | | (335.6) | Derecognition (2) | | | (3,954.5) | | | — | Issuances | | | — | | | 6.4 | Foreign currency translation adjustment | | | (140.9) | | | 385.0 | Balance at end of period at original discount rate | | | — | | | 4,107.0 | Effect of changes in discount rate assumptions at end of period | | | — | | | 493.5 | Future policy benefits | | $ | — | | $ | 4,600.5 | | | | | | | | Weighted-average duration for future policy benefits (years) (3) | | | — | | | 9.6 |
| (1) | Includes inflation adjustments. |
| (2) | Relates to the sale of this business in third quarter 2026. |
| (3) | Represents the average of the cohort-level duration of the benefit cash flows weighted by the reserve balance for each cohort. |
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| Benefits and Protection |
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| Future Policy Benefits and Claims |
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| Summary of balances and the changes in the present value for expected net premiums and expected future policy benefits (Table) |
| | | | | | | | | | | | | | | For the nine months ended | | For the year ended | | | September 30, 2026 | | December 31, 2025 | | | Specialty | | Life | | Specialty | | Life | | | Benefits | | Insurance | | Benefits | | Insurance | | | Individual | | | | | Individual | | | | | | disability | | Term life | | disability | | Term life | | | | ($ in millions) | Present value of expected net premiums | | | | | | | | | | | | | Balance at beginning of period | | $ | 2,740.8 | | $ | 4,392.2 | | $ | 2,680.6 | | $ | 4,107.2 | Effect of changes in discount rate assumptions at beginning of period | | | 349.8 | | | 198.4 | | | 436.4 | | | 290.1 | Balance at beginning of period at original discount rate | | | 3,090.6 | | | 4,590.6 | | | 3,117.0 | | | 4,397.3 | Effect of changes in cash flow assumptions | | | 25.8 | | | 47.6 | | | (22.5) | | | 163.2 | Effect of actual variances from expected experience | | | 104.3 | | | (29.8) | | | 114.8 | | | 11.7 | Adjusted beginning of period balance at original discount rate | | | 3,220.7 | | | 4,608.4 | | | 3,209.3 | | | 4,572.2 | Interest accrual | | | 82.6 | | | 161.6 | | | 108.8 | | | 208.7 | Net premiums collected | | | (227.6) | | | (323.3) | | | (298.0) | | | (418.8) | Issuances | | | 51.2 | | | 157.2 | | | 70.5 | | | 228.5 | Balance at end of period at original discount rate | | | 3,126.9 | | | 4,603.9 | | | 3,090.6 | | | 4,590.6 | Effect of changes in discount rate assumptions at end of period | | | (540.1) | | | (529.5) | | | (349.8) | | | (198.4) | Balance at end of period | | $ | 2,586.8 | | $ | 4,074.4 | | $ | 2,740.8 | | $ | 4,392.2 | | | | | | | | | | | | | | Present value of expected future policy benefit payments | | | | | | | | | | | | | Balance at beginning of period | | $ | 4,735.0 | | $ | 5,907.9 | | $ | 4,509.6 | | $ | 5,355.2 | Effect of changes in discount rate assumptions at beginning of period | | | 1,191.3 | | | 215.7 | | | 1,302.8 | | | 366.0 | Balance at beginning of period at original discount rate | | | 5,926.3 | | | 6,123.6 | | | 5,812.4 | | | 5,721.2 | Effect of changes in cash flow assumptions | | | 49.7 | | | 63.8 | | | (42.6) | | | 240.4 | Effect of actual variances from expected experience | | | 111.1 | | | (51.1) | | | 107.9 | | | 4.1 | Adjusted beginning of period balance at original discount rate | | | 6,087.1 | | | 6,136.3 | | | 5,877.7 | | | 5,965.7 | Interest accrual | | | 164.4 | | | 217.1 | | | 213.8 | | | 275.3 | Benefit payments | | | (182.6) | | | (251.2) | | | (234.1) | | | (359.7) | Issuances | | | 49.5 | | | 166.5 | | | 68.9 | | | 242.3 | Balance at end of period at original discount rate | | | 6,118.4 | | | 6,268.7 | | | 5,926.3 | | | 6,123.6 | Effect of changes in discount rate assumptions at end of period | | | (1,675.1) | | | (671.0) | | | (1,191.3) | | | (215.7) | Balance at end of period | | $ | 4,443.3 | | $ | 5,597.7 | | $ | 4,735.0 | | $ | 5,907.9 | | | | | | | | | | | | | | Future policy benefits (1) | | $ | 1,856.5 | | $ | 1,523.3 | | $ | 1,994.2 | | $ | 1,515.7 | Reinsurance impact | | | (405.7) | | | (4.9) | | | (430.0) | | | 9.8 | Future policy benefits after reinsurance | | $ | 1,450.8 | | $ | 1,518.4 | | $ | 1,564.2 | | $ | 1,525.5 | | | | | | | | | | | | | | Weighted-average duration for future policy benefits (years) (2) | | | 16.6 | | | 7.0 | | | 17.2 | | | 7.4 |
| (1) | Represents the present value of expected future policy benefit payments less the present value of expected net premiums. |
| (2) | Represents the average of the cohort-level duration of the benefits less the net premium cash flows weighted by the reserve balance for each cohort. |
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| Summary of balances and the changes in the additional liability for certain benefit features (Table) |
| | | | | | | | | For the nine months ended | | For the year ended | | | September 30, 2026 | | December 31, 2025 | | | | ($ in millions) | Balance at beginning of period | | $ | 6,604.8 | | $ | 6,037.2 | Effect of changes in cash flow assumptions | | | 25.0 | | | 6.8 | Effect of actual variances from expected experience | | | 45.7 | | | 18.5 | Interest accrual | | | 227.9 | | | 282.4 | Net assessments collected | | | 321.6 | | | 430.6 | Benefit payments | | | (195.7) | | | (170.7) | Balance at end of period | | | 7,029.3 | | | 6,604.8 | Reinsurance impact | | | (7,019.4) | | | (6,593.6) | Balance at end of period after reinsurance | | $ | 9.9 | | $ | 11.2 | | | | | | | | Weighted-average duration for additional liability (years) (1) | | | 20.4 | | | 21.6 |
| (1) | Represents the average of the cohort-level duration of the benefits less the net assessment cash flows weighted by the reserve balance for each cohort. |
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| Corporate |
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| Future Policy Benefits and Claims |
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| Summary of balances and the changes in the present value for expected net premiums and expected future policy benefits (Table) |
| | | | | | | | | For the nine months ended | | For the year ended | | | September 30, 2026 | | December 31, 2025 | | | | ($ in millions) | Present value of expected net premiums | | | | | | | Balance at beginning of period | | $ | 32.4 | | $ | 30.8 | Effect of changes in discount rate assumptions at beginning of period | | | (2.0) | | | (1.3) | Balance at beginning of period at original discount rate | | | 30.4 | | | 29.5 | Effect of changes in cash flow assumptions | | | (2.3) | | | 3.3 | Effect of actual variances from expected experience | | | (0.4) | | | 0.3 | Adjusted beginning of period balance at original discount rate | | | 27.7 | | | 33.1 | Interest accrual | | | 1.2 | | | 1.8 | Net premiums collected | | | (3.5) | | | (4.5) | Balance at end of period at original discount rate | | | 25.4 | | | 30.4 | Effect of changes in discount rate assumptions at end of period | | | — | | | 2.0 | Balance at end of period | | $ | 25.4 | | $ | 32.4 | | | | | | | | Present value of expected future policy benefit payments | | | | | | | Balance at beginning of period | | $ | 199.1 | | $ | 195.6 | Effect of changes in discount rate assumptions at beginning of period | | | (12.7) | | | (8.8) | Balance at beginning of period at original discount rate | | | 186.4 | | | 186.8 | Effect of changes in cash flow assumptions | | | (12.3) | | | 1.3 | Effect of actual variances from expected experience | | | 0.7 | | | 3.4 | Adjusted beginning of period balance at original discount rate | | | 174.8 | | | 191.5 | Interest accrual | | | 8.1 | | | 11.2 | Benefit payments | | | (12.2) | | | (16.3) | Balance at end of period at original discount rate | | | 170.7 | | | 186.4 | Effect of changes in discount rate assumptions at end of period | | | (3.2) | | | 12.7 | Balance at end of period | | $ | 167.5 | | $ | 199.1 | | | | | | | | Future policy benefits (1) | | $ | 142.1 | | $ | 166.7 | Reinsurance impact | | | (142.1) | | | (166.7) | Future policy benefits after reinsurance | | $ | — | | $ | — | | | | | | | | Weighted-average duration for future policy benefits (years) (2) | | | 8.8 | | | 9.7 |
| (1) | Represents the present value of expected future policy benefit payments less the present value of expected net premiums. |
| (2) | Represents the average of the cohort-level duration of the benefits less the net premium cash flows weighted by the reserve balance for each cohort. |
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