v3.26.3
LIABILITIES FOR FUTURE POLICYHOLDER BENEFITS
 9 Months Ended
Sep. 30, 2026
Insurance [Abstract]  
LIABILITIES FOR FUTURE POLICYHOLDER BENEFITS DAC AND OTHER DEFERRED ASSETS/LIABILITIES
The following table presents a reconciliation of DAC to the consolidated balance sheets:
September 30, 2026December 31, 2025
(in millions)
Retirement
GMxB Core
$1,557 $1,587 
EQUI-VEST Individual
149 153 
Investment Edge317 273 
SCS2,466 2,274 
EQUI-VEST Group
800 789 
Momentum76 79 
Corporate and Other
Term256 288 
Universal Life
162 167 
Variable Universal Life
1,174 1,143 
Indexed Universal Life
175 181 
GMxB Legacy
442 472 
Closed Block
92 98 
Other
20 19 
Total$7,686 $7,523 
Annually, or as circumstances warrant, the Company reviews the associated decrements assumptions (i.e., mortality and lapse) based on a multi-year average of companies experience with actuarial judgments to reflect other observable industry trends. In addition to DAC, the unearned revenue liability and sales inducement asset use similar techniques and quarterly update processes for balance amortization.
Changes in the DAC asset were as follows:
Nine Months Ended September 30, 2026
Retirement
Corporate and OtherTotal
GMxB CoreEI IE SCSEG MomentumTermULVUL IUL GMxB LegacyCB
(in millions)
Balance, beginning of period$1,587 $153 $273 $2,274 $789 $79 $288 $167 $1,143 $181 $472 $98 $7,504 
Capitalization 92 6 64 563 49 8 4 8 90 4 13 — 901 
Amortization (1)(122)(10)(20)(304)(38)(11)(26)(9)(53)(9)(43)(6)(651)
Recovery of acquisition costs (2)— — — (67)— — (10)(4)(6)(1)— — (88)
Balance, end of period$1,557 $149 $317 $2,466 $800 $76 $256 $162 $1,174 $175 $442 $92 $7,666 
______________
(1)DAC amortization of $2 million related to Other not reflected in table above.
(2)Related to third party reinsurance transactions.

Nine Months Ended September 30, 2025
Retirement
Corporate and OtherTotal
GMxB CoreEI IE SCSEG MomentumTermULVUL IUL GMxB Legacy
CB
(in millions)
Balance, beginning of period$1,605 $154 $225 $1,938 $768 $83 $314 $170 $1,083 $186 $517 $107 $7,150 
Capitalization104 8 53 495 47 7 7 10 103 8 12 — 854 
Amortization (1)
(117)(9)(17)(245)(34)(11)(27)(9)(51)(9)(47)(7)(583)
Recovery of acquisition costs (2)— — — — — — — (2)(7)(2)— — (11)
Balance, end of period$1,592 $153 $261 $2,188 $781 $79 $294 $169 $1,128 $183 $482 $100 $7,410 
______________
(1)DAC amortization of $1 million related to Other not reflected in table above.
(2)Related to third party reinsurance transactions.
Changes in the Retirement and Corporate and Other sales inducement assets were as follows:
Nine Months Ended September 30,
20262025
Retirement
Corporate and OtherRetirementCorporate and Other
GMxB CoreGMxB LegacyGMxB CoreGMxB Legacy
(in millions)
Balance, beginning of period$107 $141 $117 $160 
Capitalization1 — 2 — 
Amortization(9)(13)(9)(15)
Balance, end of period$99 $128 $110 $145 
Changes in the Corporate and Other unearned revenue liability were as follows:
Nine Months Ended September 30,
20262025
ULVULIULULVULIUL
(in millions)
Balance, beginning of period$112 $866 $254 $114 $840 $250 
Capitalization8 117 28 10 111 34 
Amortization(6)(45)(14)(6)(41)(12)
Recovery of unearned revenue reserves (1)
(5)(60)(19)(4)(47)(16)
Balance, end of period$109 $878 $249 $114 $863 $256 
______________
(1)    Related to third party reinsurance transactions.
LIABILITIES FOR FUTURE POLICYHOLDER BENEFITSThe following table reconciles the net liability for future policy benefits and liability of death benefits to the liability for future policy benefits in the consolidated balance sheets:
September 30, 2026December 31, 2025
(in millions)
Reconciliation
Term$1,138 $1,241 
Payout
5,160 5,243 
Group Pension - Benefit Reserve & DPL380 432 
Health1,180 1,316 
UL1,369 1,328 
Subtotal9,227 9,560 
  Whole Life Closed Block and Open Block products4,782 4,980 
Other (1)927 936 
Future policyholder benefits total14,936 15,476 
  Other policyholder funds and dividends payable2,013 2,184 
Total$16,949 $17,660 
_____________
(1)Primarily consists of future policy benefits related to Protective Life and Annuity, Assumed Life and Disability, Group Life Run off, Variable Interest Sensitive Life rider and EB.
The following table summarizes balances and changes in the liability for future policy benefits for nonparticipating traditional and limited pay contracts:
Nine Months Ended September 30, 2026Nine Months Ended September 30, 2025
Retirement
Corporate & Other
Retirement
Corporate & Other
PayoutTermGroup PensionHealthPayoutTermGroup PensionHealth
(in millions)
Present Value of Expected Net Premiums
Balance, beginning of period$— $1,818 $— $(23)$— $1,932 $— $(25)
Beginning balance at original discount rate— 1,802 — (24)— 1,959 — (26)
Effect of changes in cash flow assumptions— — — 16 — (30)— — 
Effect of actual variances from expected experience— (75)— (1)— (68)— (2)
Adjusted beginning of period balance— 1,727 — (9)— 1,861 — (28)
Issuances— 22 — — — 28 — — 
Interest accrual— 64 — — — 69 — (1)
Net premiums collected— (120)— 2 — (131)— 4 
Ending Balance at original discount rate— 1,693 — (7)— 1,827 — (25)
Effect of changes in discount rate assumptions— (119)— 1 — 28 — 1 
Balance, end of period$— $1,574 $— $(6)$— $1,855 $— $(24)
Present Value of Expected Future Policy Benefits
Balance, beginning of period$5,243 $3,058 $432 $1,293 $5,050 $3,216 $460 $1,337 
Beginning balance of original discount rate5,402 2,991 472 1,458 5,390 3,215 514 1,555 
Effect of changes in cash flow assumptions (1)
(15)15 — 33 (459)(46)— — 
Effect of actual variances from expected experience(3)(113)— (4)(3)(88)1 (4)
Adjusted beginning of period balance5,384 2,893 472 1,487 4,928 3,081 515 1,551 
Issuances529 24 — — 579 30 — — 
Interest accrual156 109 12 36 146 117 13 38 
Benefits payments(429)(168)(43)(106)(376)(196)(46)(111)
Ending Balance at original discount rate5,640 2,858 441 1,417 5,277 3,032 482 1,478 
Effect of changes in discount rate assumptions(480)(147)(61)(243)(158)85 (40)(166)
Balance, end of period$5,160 $2,711 $380 $1,174 $5,119 $3,117 $442 $1,312 
Impact of flooring LFPB at zero— 1 — — — 1 — — 
Net liability for future policy benefits5,160 1,138 380 1,180 5,119 1,263 442 1,336 
Less: Reinsurance recoverable(1,246)(848)— (903)(1,113)(943)— (1,042)
Net liability for future policy benefits, after reinsurance recoverable$3,914 $290 $380 $277 $4,006 $320 $442 $294 
Weighted-average duration of liability for future policyholder benefits (years)7.36.76.78.07.56.86.88.2
______________
(1)Includes the net income impact due to novation as described in Note 1 of the Notes to these Consolidated Financial Statements.
The following table provides the amount of undiscounted and discounted expected gross premiums and expected future benefits and expenses related to nonparticipating traditional and limited payment contracts:
September 30, 2026December 31, 2025
(in millions)
Term
Expected future benefit payments and expenses (undiscounted)$4,979 $5,214 
Expected future gross premiums (undiscounted)
5,951 6,250 
Expected future benefit payments and expenses (discounted; AOCI basis)2,711 3,058 
Expected future gross premiums (discounted; AOCI basis)3,000 3,424 
Payout
Expected future benefit payments and expenses (undiscounted)8,023 7,683 
Expected future gross premiums (undiscounted)
— — 
Expected future benefit payments and expenses (discounted; AOCI basis)5,037 5,127 
Expected future gross premiums (discounted; AOCI basis)— — 
Group Pension
Expected future benefit payments and expenses (undiscounted)538 578 
Expected future gross premiums (undiscounted)
— — 
Expected future benefit payments and expenses (discounted; AOCI basis)362 412 
Expected future gross premiums (discounted; AOCI basis)— — 
Health
Expected future benefit payments and expenses (undiscounted)1,922 1,987 
Expected future gross premiums (undiscounted)
55 60 
Expected future benefit payments and expenses (discounted; AOCI basis)1,168 1,280 
Expected future gross premiums (discounted; AOCI basis)$42 $48 
The table below summarizes the revenue and interest related to nonparticipating traditional and limited payment contracts:
Nine Months Ended September 30,
2026202520262025
Gross PremiumInterest Accretion
(in millions)
Revenue and Interest Accretion
Term$222 $238 $45 $48 
Payout
132 164 167 158 
Group Pension— — 12 13 
Health6 8 37 39 
Total$360 $410 $261 $258 
The following table provides the weighted average interest rates for the liability for future policy benefits:
September 30, 2026December 31, 2025
Weighted Average Interest Rate
Term
Interest accretion rate5.5 %5.6 %
Current discount rate5.9 %4.9 %
Payout
Interest accretion rate4.7 %4.5 %
Current discount rate6.0 %5.0 %
Group Pension
Interest accretion rate3.3 %3.4 %
Current discount rate5.9 %4.8 %
Health
Interest accretion rate3.4 %3.4 %
Current discount rate6.1 %5.0 %
The following table provides the balance, changes in and the weighted average durations of the additional insurance liabilities:
Nine Months Ended September 30,
20262025
Corporate and Other
UL
(in millions)
Balance, beginning of period$1,328 $1,246 
Beginning balance before AOCI adjustments1,347 1,302 
Effect of changes in interest rate & cash flow assumptions and model changes7 5 
Effect of actual variances from expected experience17 62 
Adjusted beginning of period balance1,371 1,369 
Interest accrual46 44 
Net assessments collected46 (9)
Benefit payments(69)(78)
Ending balance before shadow reserve adjustments1,394 1,326 
Effect of reserve adjustment recorded in AOCI(25)(17)
Balance, end of period$1,369 $1,309 
Net liability for additional liability $1,369 $1,309 
Less: Reinsurance recoverable(1,131)(1,089)
Net liability for additional liability, after reinsurance recoverable$238 $220 
Weighted-average duration of additional liability - death benefit (years)17.818.6
The following tables provide the revenue, interest and weighted average interest rates, related to the additional insurance liabilities:
Nine Months Ended September 30,
2026202520262025
AssessmentsInterest Accretion
(in millions)
Revenue and Interest Accretion
UL$433 $227 $46 $44 
Total$433 $227 $46 $44 
September 30, 2026December 31, 2025
Weighted Average Interest Rate
UL4.5 %4.5 %
Interest accretion rate4.5 %4.5 %
The discount rate used for additional insurance liabilities reserve is based on the crediting rate at issue.