v3.26.3
Insurance
 9 Months Ended
Sep. 30, 2026
Insurance [Abstract]  
Insurance
8. Insurance

Changes in the reserve for unpaid claims and loss adjustment expenses (net of reinsurance recoverables) on our short-duration insurance contracts were as follows:
At or for the
Nine Months Ended September 30,
(dollars in millions)20262025
Balance at beginning of period$98 $102 
Less reinsurance recoverables(3)(3)
Net balance at beginning of period95 99 
Additions for losses and loss adjustment expenses incurred to:
Current year155 148 
Prior years *
(3)(8)
Total152 140 
Reductions for losses and loss adjustment expenses paid related to:
Current year(91)(87)
Prior years(58)(56)
Total(149)(143)
Net balance at end of period98 96 
Plus reinsurance recoverables3 3 
Balance at end of period$101 $99 
*    At September 30, 2026, there were redundancies in the prior years’ net reserves due to favorable development of credit life claims during the period. At September 30, 2025, there were redundancies in the prior years’ net reserves due to favorable development of credit disability claims during the period.

LIABILITY FOR FUTURE POLICY BENEFITS

The present values of expected net premiums on long-duration insurance contracts were as follows:
At or for the
Nine Months Ended September 30,
20262025
(dollars in millions)Term and
 Whole Life		Accidental Death and Disability ProtectionTerm and
 Whole Life		Accidental Death and Disability Protection
Balance at beginning of period$138 $28 $177 $33 
Effect of cumulative changes in discount rate assumptions (beginning of period)(3)— (2)— 
Beginning balance at original discount rate135 28 175 33 
Effect of changes in cash flow assumptions8 (1)(20)— 
Effect of actual variances from expected experience(8)(3)(4)1 
Adjusted balance at beginning of period135 24 151 34 
Interest accretion6 1 6 1 
Net premiums collected(15)(3)(18)(3)
Ending balance at original discount rate126 22 139 32 
Effect of changes in discount rate assumptions(3)(1)5 — 
Balance at ending of period$123 $21 $144 $32 
The present values of expected future policy benefits on long-duration insurance contracts were as follows:
At or for the
Nine Months Ended September 30,
20262025
(dollars in millions)Term and
Whole Life		Accidental Death and Disability ProtectionTerm and
Whole Life		Accidental Death and Disability Protection
Balance at beginning of period$329 $90 $378 $96 
Effect of cumulative changes in discount rate assumptions (beginning of period)(9)1(5)2
Beginning balance at original discount rate3209137398
Effect of changes in cash flow assumptions(4)(1)(23)—
Effect of actual variances from expected experience(6)(7)(5)3
Adjusted balance at beginning of period31083345101
Net issuances3231
Interest accretion123144
Benefit payments(33)(8)(36)(9)
Ending balance at original discount rate2928032697
Effect of changes in discount rate assumptions(5)(4)13—
Balance at ending of period$287 $76 $339 $97 

The net liabilities for future policy benefits on long-duration insurance contracts were as follows:
At or for the
Nine Months Ended September 30,
20262025
(dollars in millions)Term and
Whole Life		Accidental Death and Disability ProtectionTerm and
Whole Life		Accidental Death and Disability Protection
Net liability for future policy benefits$164 $55 $195 $65 
Deferred profit liability12411145
Total net liability for future policy benefits$176 $96 $206 $110 

The weighted-average duration of the liability for future policy benefits was 7 years at September 30, 2026 and 2025.

The following table reconciles the net liability for future policy benefits to Insurance claims and policyholder liabilities in the condensed consolidated balance sheets:
At or for the
Nine Months Ended September 30,
(dollars in millions)20262025
Term and whole life$176 $206 
Accidental death and disability protection96 110 
Other *258 262 
Total insurance claims and policyholder liabilities
$530 $578 
*    Other primarily includes reserves for short-duration contracts that are payable to third-party beneficiaries.
The undiscounted and discounted expected future gross premiums and expected future benefits and expenses for our long-duration insurance contracts were as follows:
At or for the
Nine Months Ended September 30,
20262025
(dollars in millions)Term and
Whole Life		Accidental Death and Disability ProtectionTerm and
Whole Life		Accidental Death and Disability Protection
Expected future gross premiums:
Undiscounted$290 $90 $292 $112 
Discounted206 63 224 82 
Expected future benefit payments:
Undiscounted404 114 449 140 
Discounted287 76 339 97 

The revenue and interest accretion related to our long-duration insurance contracts recognized in the condensed consolidated statements of operations were as follows:
At or for the
Nine Months Ended September 30,
20262025
(dollars in millions)Term and
Whole Life		Accidental Death and Disability ProtectionTerm and
Whole Life		Accidental Death and Disability Protection
Gross premiums or assessments$33 $10 $36 $12 
Interest accretion$7 $2 $8 $2 

The expected and actual experiences for mortality, morbidity, and lapses of the liability for future policy benefits were as follows:
At or for the
Nine Months Ended September 30,
20262025
Term and
Whole Life		Accidental Death and Disability ProtectionTerm and
Whole Life		Accidental Death and Disability Protection
Mortality/Morbidity:
Expected0.38 %0.02 %0.39 %0.01 %
Actual0.37 %0.01 %0.40 %0.01 %
Lapses:
Expected3.75 %1.60 %3.33 %1.70 %
Actual3.98 %2.92 %3.56 %2.18 %

The weighted-average interest rates for the liability of future policy benefits for our long-duration insurance contracts were as follows:
At or for the
Nine Months Ended September 30,
20262025
Term and
Whole Life		Accidental Death and Disability ProtectionTerm and
Whole Life		Accidental Death and Disability Protection
Interest accretion rate5.29 %4.85 %5.29 %4.86 %
Current discount rate5.93 %5.98 %4.98 %5.14 %