| Schedule of Liability for Future Policy Benefit |
The following table summarizes balances and changes in the LFPB:
| | | | | | | | | | | | | 2026 | | 2025 | | (In millions) | | | | | | | | | Present value of future net premiums | | | | | Balance, January 1 | $ | 3,363 | | | $ | 3,425 | | | Effect of changes in discount rate | (71) | | | (7) | | | Balance, January 1, at original locked in discount rate | 3,292 | | | 3,418 | | | Effect of changes in cash flow assumptions (a) | 45 | | | 114 | | | Effect of actual variances from expected experience (a) | (15) | | | (2) | | | Adjusted balance, January 1 | 3,322 | | | 3,530 | | | Interest accrual | 125 | | | 133 | | | Net premiums: earned during period | (298) | | | (306) | | | Balance, end of period at original locked in discount rate | 3,149 | | | 3,357 | | | Effect of changes in discount rate | (128) | | | 83 | | Balance, September 30 | $ | 3,021 | | | $ | 3,440 | | | | | | | Present value of future benefits & expenses | | | | | Balance, January 1 | $ | 16,811 | | | $ | 16,583 | | | Effect of changes in discount rate | 173 | | | 440 | | | Balance, January 1, at original locked in discount rate | 16,984 | | | 17,023 | | | Effect of changes in cash flow assumptions (a) | 218 | | | 121 | | | Effect of actual variances from expected experience (a) | 78 | | | 50 | | | Adjusted balance, January 1 | 17,280 | | | 17,194 | | | Interest accrual | 683 | | | 688 | | | Benefit & expense payments | (870) | | | (870) | | | Balance, end of period at original locked in discount rate | 17,093 | | | 17,012 | | | Effect of changes in discount rate | (1,635) | | | (26) | | Balance, September 30 | $ | 15,458 | | | $ | 16,986 | | | | | | | | | | Net LFPB, September 30 | $ | 12,437 | | | $ | 13,546 | |
| | | | | | | (a) | As of September 30, 2026 and 2025, the re-measurement loss of $266 million and $59 million presented parenthetically on the Consolidated Condensed Statement of Operations is comprised of the effect of changes in cash flow assumptions and the effect of actual variances from expected experience. |
The following table presents earned premiums and interest accretion associated with the long-term care business recognized on the Consolidated Condensed Statement of Operations.
| | | | | | | | | | | | | | | | | | | | | | Three Months Ended | Nine Months Ended | | September 30, | September 30, | | 2026 | | 2025 | 2026 | | 2025 | | | | | | | | | (In millions) | | | | | | | | | | | | | | | Earned premiums | $ | 101 | | | $ | 106 | | $ | 307 | | | $ | 318 | | | Interest accretion | 188 | | | 185 | | 558 | | | 555 | |
The following table presents undiscounted expected future benefit and expense payments and undiscounted expected future gross premiums.
| | | | | | | | | | | | | September 30, | | 2026 | | 2025 | | | | | | (In millions) | | | | | | | | | Expected future benefit and expense payments | $ | 31,316 | | | $ | 31,582 | | | Expected future gross premiums | 4,667 | | | 5,048 | |
The weighted average interest rates in the table below are calculated based on the rate used to discount all future cash flows.
| | | | | | | | | | | | | | | | | | | September 30, | | December 31, | | 2026 | | 2025 | | 2025 | | | | | | | | | | | | | | Original locked in discount rate | 5.13 | % | | 5.16 | % | | 5.16 | % | | Upper-medium grade fixed income instrument discount rate | 6.25 | | | 5.24 | | | 5.32 | |
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