Long-duration Contracts

9 Months Ended

Sep. 30, 2026

7. Long-duration Contracts

Interest sensitive contract liabilities – Interest sensitive contract liabilities primarily include:

▪traditional deferred annuities (which include individual and group deferred annuities);

▪indexed annuities consisting of fixed indexed, index-linked variable annuities, and assumed indexed universal life without significant mortality risk;

▪funding agreements; and

▪other investment-type contracts comprising immediate annuities without significant mortality risk (which include pension group annuities and structured settlements without life contingencies), guaranteed investment contracts, and assumed endowments without significant mortality risks.

The following represents a rollforward of the policyholder account balance by product within interest sensitive contract liabilities. Where explicit policyholder account balances do not exist, the disaggregated rollforward represents the recorded reserve.


	Nine months ended September 30, 2026
(In millions, except percentages)	Traditional deferred annuities			Indexed annuities			Funding agreements			Other investment-type			Total
Balance at December 31, 2025	$	109,201		$	105,317		$	85,555		$	8,821		$	308,894
Deposits	24,378			14,171			20,490			1,848			60,887
Policy charges	(1)			(646)			—			—			(647)
Surrenders and withdrawals	(6,772)			(8,989)			(47)			(89)			(15,897)
Benefit payments	(1,154)			(1,231)			(12,716)			(205)			(15,306)
Interest credited	4,126			3,604			3,017			211			10,958
Foreign exchange	(18)			2			(358)			(23)			(397)
Other	—			—			(1,130)			(98)			(1,228)
Balance at September 30, 2026	$	129,760		$	112,228		$	94,811		$	10,465		$	347,264

Weighted average crediting rate	4.8		%	2.8		%	4.7		%	3.2		%
Net amount at risk	$	421		$	18,595		$	—		$	10
Cash surrender value	120,420			101,977			—			6,919


	Nine months ended September 30, 2025
(In millions, except percentages)	Traditional deferred annuities			Indexed annuities			Funding agreements			Other investment-type			Total
Balance at December 31, 2024	$	86,661		$	97,861		$	54,768		$	8,030		$	247,320
Deposits	23,596			13,957			31,400			964			69,917
Policy charges	(1)			(583)			—			—			(584)
Surrenders and withdrawals	(6,537)			(8,507)			—			(127)			(15,171)
Benefit payments	(1,044)			(1,170)			(6,026)			(211)			(8,451)
Interest credited	3,272			2,091			2,340			169			7,872
Foreign exchange	226			6			892			301			1,425
Other	—			—			233			(57)			176
Balance at September 30, 2025	$	106,173		$	103,655		$	83,607		$	9,069		$	302,504

Weighted average crediting rate	4.7		%	2.7		%	4.7		%	2.8		%
Net amount at risk	$	423		$	17,195		$	—		$	31
Cash surrender value	100,279			96,273			—			7,089

The following is a reconciliation of interest sensitive contract liabilities to the condensed consolidated balance sheets:


	September 30,
(In millions)	2026		2025
Traditional deferred annuities	$	129,760	$	106,173
Indexed annuities	112,228		103,655

Funding agreements	94,811		83,607
Other investment-type	10,465		9,069

Reconciling items1	6,835		7,233
Interest sensitive contract liabilities	$	354,099	$	309,737

1 Reconciling items primarily include embedded derivatives in indexed annuities, unaccreted host contract adjustments on indexed annuities, negative VOBA, sales inducement liabilities, and wholly ceded universal life insurance contracts.

The following represents policyholder account balances by range of guaranteed minimum crediting rates (GMCR), as well as the related range of the difference between rates being credited to policyholders and the respective guaranteed minimums. Our funding agreements and other investment-type products provide us with little to no discretionary ability to change the rates of interest payable to the respective policyholder or institution and, as a result, those policyholder account balances are excluded from the following tables.


	September 30, 2026
(In millions)	At guaranteed minimum		1 basis point – 100 basis points above guaranteed minimum		Greater than 100 basis points above guaranteed minimum		Total
Traditional deferred annuities
< 2.0%	$	4,964	$	1,347	$	106,025	$	112,336
2.0% – < 4.0%	5,341		382		7,220		12,943
4.0% – < 6.0%	4,476		1		1		4,478
6.0% and greater	3		—		—		3
Total traditional deferred annuities	$	14,784	$	1,730	$	113,246	$	129,760



Indexed annuities
< 2.0%	$	1,323	$	900	$	3,648	$	5,871
2.0% – < 4.0%	3,270		149		1		3,420


Total indexed annuities with GMCR	4,593		1,049		3,649		9,291
Other1							102,937
Total indexed annuities							$	112,228




























1 Includes account value allocated to an indexed strategy or other amounts without a GMCR.


	September 30, 2025
(In millions)	At guaranteed minimum		1 basis point – 100 basis points above guaranteed minimum		Greater than 100 basis points above guaranteed minimum		Total
Traditional deferred annuities
< 2.0%	$	5,154	$	1,936	$	84,880	$	91,970
2.0% – < 4.0%	5,769		588		3,291		9,648
4.0% – < 6.0%	4,551		1		—		4,552
6.0% and greater	3		—		—		3
Total traditional deferred annuities	$	15,477	$	2,525	$	88,171	$	106,173



Indexed annuities
< 2.0%	$	1,519	$	1,104	$	3,522	$	6,145
2.0% – < 4.0%	3,883		93		—		3,976


Total indexed annuities with GMCR	5,402		1,197		3,522		10,121
Other1							93,534
Total indexed annuities							$	103,655




























1 Includes account value allocated to an indexed strategy or other amounts without a GMCR.

Future policy benefits – Future policy benefits consist primarily of payout annuities, including single premium immediate annuities with life contingencies (which include pension group annuities and structured settlements with life contingencies), and whole life insurance contracts.

The following is a rollforward by product within future policy benefits:


	Nine months ended September 30, 2026
(In millions, except percentages and years)	Payout annuities with life contingencies			Whole life			Total
Present value of expected net premiums
Beginning balance, present value of expected net premiums	$	—		$	1,402		$	1,402
Effect of changes in discount rate assumptions	—			(25)			(25)
Effect of foreign exchange on the change in discount rate assumptions	—			1			1
Beginning balance at original discount rate	—			1,378			1,378

Effect of actual to expected experience	—			(13)			(13)
Adjusted balance	—			1,365			1,365
Issuances	—			9			9
Interest accrual	—			36			36
Net premium collected	—			(232)			(232)
Foreign exchange	—			(4)			(4)

Ending balance at original discount rate	—			1,174			1,174
Effect of changes in discount rate assumptions	—			(31)			(31)
Effect of foreign exchange on the change in discount rate assumptions	—			(1)			(1)
Ending balance, present value of expected net premiums	$	—		$	1,142		$	1,142
Present value of expected future policy benefits
Beginning balance, present value of expected future policy benefits	$	42,058		$	3,795		$	45,853
Effect of changes in discount rate assumptions	5,941			1,036			6,977
Effect of foreign exchange on the change in discount rate assumptions	21			(47)			(26)
Beginning balance at original discount rate	48,020			4,784			52,804
Effect of changes in cash flow assumptions	51			—			51
Effect of actual to expected experience	(62)			13			(49)
Adjusted balance	48,009			4,797			52,806
Issuances	441			9			450
Interest accrual	1,286			125			1,411
Benefit payments	(3,247)			(312)			(3,559)
Foreign exchange	(14)			(16)			(30)

Ending balance at original discount rate	46,475			4,603			51,078
Effect of changes in discount rate assumptions	(8,823)			(1,438)			(10,261)
Effect of foreign exchange on the change in discount rate assumptions	(14)			51			37
Ending balance, present value of expected future policy benefits	37,638			3,216			40,854
Less: Present value of expected net premiums	—			1,142			1,142
Net future policy benefits	37,638			2,074			39,712
Less: Reinsurance recoverable	—			6			6
Net future policy benefits, net of reinsurance	$	37,638		$	2,068		$	39,706

Weighted-average liability duration (in years)	9.2			19.7
Weighted-average interest accretion rate	3.7		%	5.2		%
Weighted-average current discount rate	6.4		%	7.5		%
Expected future gross premiums, undiscounted	$	—		$	1,664
Expected future gross premiums, discounted1	—			1,342
Expected future benefit payments, undiscounted	68,797			11,428

1 Discounted at the original discount rate.


	Nine months ended September 30, 2025
(In millions, except percentages and years)	Payout annuities with life contingencies			Whole life			Total
Present value of expected net premiums
Beginning balance, present value of expected net premiums	$	—		$	880		$	880
Effect of changes in discount rate assumptions	—			(30)			(30)
Effect of foreign exchange on the change in discount rate assumptions	—			2			2
Beginning balance at original discount rate	—			852			852
Effect of changes in cash flow assumptions	—			54			54
Effect of actual to expected experience	—			(14)			(14)
Adjusted balance	—			892			892
Issuances	—			15			15
Interest accrual	—			15			15
Net premium collected	—			(139)			(139)
Foreign exchange	—			54			54
Other	—			10			10
Ending balance at original discount rate	—			847			847
Effect of changes in discount rate assumptions	—			13			13
Effect of foreign exchange on the change in discount rate assumptions	—			(1)			(1)
Ending balance, present value of expected net premiums	$	—		$	859		$	859
Present value of expected future policy benefits
Beginning balance, present value of expected future policy benefits	$	42,261		$	2,711		$	44,972
Effect of changes in discount rate assumptions	7,378			206			7,584
Effect of foreign exchange on the change in discount rate assumptions	(5)			(1)			(6)
Beginning balance at original discount rate	49,634			2,916			52,550
Effect of changes in cash flow assumptions	(53)			184			131
Effect of actual to expected experience	(48)			(51)			(99)
Adjusted balance	49,533			3,049			52,582
Issuances	205			15			220
Interest accrual	1,311			55			1,366
Benefit payments	(3,329)			(77)			(3,406)
Foreign exchange	58			186			244
Other	—			11			11
Ending balance at original discount rate	47,778			3,239			51,017
Effect of changes in discount rate assumptions	(5,849)			(944)			(6,793)
Effect of foreign exchange on the change in discount rate assumptions	(20)			(7)			(27)
Ending balance, present value of expected future policy benefits	41,909			2,288			44,197
Less: Present value of expected net premiums	—			859			859
Net future policy benefits	$	41,909		$	1,429		$	43,338

Weighted-average liability duration (in years)	9.3			23.0
Weighted-average interest accretion rate	3.7		%	5.0		%
Weighted-average current discount rate	5.2		%	6.6		%
Expected future gross premiums, undiscounted	$	—		$	1,102
Expected future gross premiums, discounted1	—			920
Expected future benefit payments, undiscounted	69,682			8,136

1 Discounted at the original discount rate.

The following is a reconciliation of future policy benefits to the condensed consolidated balance sheets:


	September 30,
(In millions)	2026		2025
Payout annuities with life contingencies	$	37,638	$	41,909
Whole life	2,074		1,429
Reconciling items1	5,454		5,668
Future policy benefits	$	45,166	$	49,006

1 Reconciling items primarily include the deferred profit liability and negative VOBA associated with the liability for future policy benefits. Additionally, it includes term life reserves, fully ceded whole life reserves, and reserves for immaterial lines of business including accident and health and disability, as well as other insurance benefit reserves for no-lapse guarantees with universal life contracts, all of which are fully ceded.

The following is a reconciliation of premiums and interest expense relating to future policy benefits to the condensed consolidated statements of income (loss):


	Premiums				Interest expense
	Nine months ended September 30,				Nine months ended September 30,
(In millions)	2026		2025		2026		2025
Payout annuities with life contingencies	$	304	$	190	$	1,285	$	1,312
Whole life	256		145		88		40
Reconciling items1	17		16		—		—
Total	$	577	$	351	$	1,373	$	1,352

1 Reconciling items primarily relate to immaterial lines of business including term life, fully ceded whole life, and accident and health and disability.

Significant assumptions and inputs to the calculation of future policy benefits for payout annuities with life contingencies include policyholder demographic data, assumptions for policyholder longevity and policyholder utilization for contracts with deferred lives, and discount rates. For whole life products, significant assumptions and inputs include policyholder demographic data, assumptions for mortality, morbidity, and lapse and discount rates.

We base certain key assumptions related to policyholder behavior on industry standard data adjusted to align with actual company experience, if necessary. At least annually, we review all significant cash flow assumptions and update as necessary, unless emerging experience indicates a more frequent review is necessary. The discount rate reflects market observable inputs from upper-medium grade fixed income instrument yields and is interpolated, where necessary, to conform to the duration of our liabilities.

During the nine months ended September 30, 2026, the present value of expected future policy benefits decreased by $4,999 million, which was driven by $3,559 million of benefit payments and a $3,228 million change in discount rate assumptions related to an increase in market observable rates, partially offset by $1,411 million of interest accruals and $450 million of issuances.

During the nine months ended September 30, 2025, the present value of expected future policy benefits decreased by $775 million, which was driven by $3,406 million of benefit payments and $99 million related to the effect of actual to expected experience, offset by $1,366 million of interest accruals, an $808 million change in discount rate assumptions related to a decrease in market observable rates, a $244 million change in foreign exchange, $220 million of issuances and $131 million related to the effect of changes in cash flow assumptions.

The following is a summary of remeasurement gains (losses) included within future policy and other policy benefits on the condensed consolidated statements of income (loss):


	Nine months ended September 30,
(In millions)	2026		2025
Reserves	$	(15)	$	8
Deferred profit liability	8		(38)
Negative VOBA	13		38
Total remeasurement gains (losses)	$	6	$	8

During the nine months ended September 30, 2026 and 2025, we recorded reserve increases of $14 million and $45 million, respectively, on the condensed consolidated statements of income (loss) as a result of the present value of benefits and expenses exceeding the present value of gross premiums.

Market risk benefits – We issue and reinsure traditional deferred and indexed annuity products that contain guaranteed lifetime withdrawal benefit (GLWB) and guaranteed minimum death benefit (GMDB) riders that meet the criteria to be classified as market risk benefits.

The following is a rollforward of net market risk benefit liabilities by product:


	Nine months ended September 30, 2026
(In millions, except years)	Traditional deferred annuities		Indexed annuities		Total
Balance at December 31, 2025	$	205	$	4,511	$	4,716
Effect of changes in instrument-specific credit risk	(5)		(255)		(260)
Balance, beginning of period, before changes in instrument-specific credit risk	200		4,256		4,456
Issuances	—		291		291
Interest accrual	6		150		156
Attributed fees collected	1		323		324
Benefit payments	(3)		(73)		(76)
Effect of changes in interest rates	(19)		(821)		(840)
Effect of changes in equity	—		(45)		(45)
Effect of actual policyholder behavior compared to expected behavior	2		79		81
Effect of changes in future expected policyholder behavior	(6)		36		30
Effect of changes in other future expected assumptions	—		(35)		(35)
Balance, end of period, before changes in instrument-specific credit risk	181		4,161		4,342
Effect of changes in instrument-specific credit risk	3		152		155
Balance at September 30, 2026	184		4,313		4,497
Less: Reinsurance recoverable	—		73		73
Balance at September 30, 2026, net of reinsurance	$	184	$	4,240	$	4,424

Net amount at risk	$	421	$	18,595
Weighted-average attained age of contract holders (in years)	77		69


	Nine months ended September 30, 2025
(In millions, except years)	Traditional deferred annuities		Indexed annuities		Total
Balance at December 31, 2024	$	190	$	3,525	$	3,715
Effect of changes in instrument-specific credit risk	(3)		(154)		(157)
Balance, beginning of period, before changes in instrument-specific credit risk	187		3,371		3,558
Issuances	—		346		346
Interest accrual	7		136		143
Attributed fees collected	1		288		289
Benefit payments	(3)		(48)		(51)
Effect of changes in interest rates	7		109		116
Effect of changes in equity	—		(106)		(106)
Effect of actual policyholder behavior compared to expected behavior	2		81		83
Effect of changes in future expected policyholder behavior	(5)		(38)		(43)
Effect of changes in other future expected assumptions	3		(15)		(12)
Balance, end of period, before changes in instrument-specific credit risk	199		4,124		4,323
Effect of changes in instrument-specific credit risk	5		284		289
Balance at September 30, 2025	204		4,408		4,612
Less: Reinsurance recoverable	—		69		69
Balance at September 30, 2025, net of reinsurance	$	204	$	4,339	$	4,543
Net amount at risk	$	423	$	17,195
Weighted-average attained age of contract holders (in years)	76		69

The following is a reconciliation of market risk benefits to the condensed consolidated balance sheets. Market risk benefit assets are included in other assets on the condensed consolidated balance sheets.


	September 30, 2026						September 30, 2025
(In millions)	Asset		Liability		Net liability		Asset		Liability		Net liability
Traditional deferred annuities	$	—	$	184	$	184	$	—	$	204	$	204
Indexed annuities	171		4,484		4,313		223		4,631		4,408





Total	$	171	$	4,668	$	4,497	$	223	$	4,835	$	4,612

During the nine months ended September 30, 2026, net market risk benefit liabilities decreased by $219 million, which was primarily driven by an $840 million change in interest rates, $105 million of changes in instrument-specific credit risk, and $76 million of benefit payments, partially offset by $324 million in fees collected from policyholders, $291 million of issuances, and $156 million of interest accruals.

During the nine months ended September 30, 2025, net market risk benefit liabilities increased by $897 million, which was primarily driven by $346 million of issuances, $289 million in fees collected from policyholders, $143 million of interest accruals, $132 million of changes in instrument-specific credit risk and a $116 million change in interest rates, offset by $106 million of changes in equity.

The determination of the fair value of market risk benefits requires the use of inputs related to fees and assessments and assumptions in determining the projected benefits in excess of the projected account balance. Judgment is required for both economic and actuarial assumptions, which can be either observable or unobservable, that impact future policyholder account growth.

Economic assumptions include interest rates and implied volatilities throughout the duration of the liability. For indexed annuities, assumptions also include projected equity returns which impact cash flows attributable to indexed strategies, implied equity volatilities, expected index credits on the next policy anniversary date and future equity option costs. Assumptions related to the level of option budgets used for determining the future equity option costs and the impact on future policyholder account value growth are considered unobservable inputs.

Policyholder behavior assumptions are unobservable inputs and are established using accepted actuarial valuation methods to estimate withdrawals (surrender rate) and income rider utilization. Assumptions are generally based on industry data and pricing assumptions which are updated for actual experience, if necessary. Actual experience may be limited for recently issued products.

All inputs are used to project excess benefits and fees over a range of risk-neutral, stochastic interest rate scenarios. For indexed annuities, stochastic equity return scenarios are also included within the range. A risk margin is incorporated within the discount rate to reflect uncertainty in the projected cash flows such as variations in policyholder behavior, as well as a credit spread to reflect nonperformance risk, which is considered an unobservable input. We use our public credit rating relative to the US Treasury curve as of the valuation date to reflect our nonperformance risk in the fair value estimate of market risk benefits.

The following summarizes the unobservable inputs for market risk benefits:


	September 30, 2026
(In millions, except percentages)	Fair value		Valuation technique	Unobservable inputs	Minimum		Maximum		Weighted average			Impact of an increase in the input on fair value
Market risk benefits, net	$	4,497	Discounted cash flow	Nonperformance risk	0.4	%	1.1	%	1.0	%	1	Decrease
				Option budget	0.5	%	5.9	%	3.0	%	2	Decrease
				Surrender rate	4.6	%	9.3	%	5.8	%	2	Decrease
				Utilization rate	28.6	%	95.0	%	89.2	%	3	Increase

	September 30, 2025
(In millions, except percentages)	Fair value		Valuation technique	Unobservable inputs	Minimum		Maximum		Weighted average			Impact of an increase in the input on fair value
Market risk benefits, net	$	4,612	Discounted cash flow	Nonperformance risk	0.4	%	1.0	%	0.9	%	1	Decrease
				Option budget	0.5	%	6.0	%	2.6	%	2	Decrease
				Surrender rate	3.7	%	7.9	%	5.2	%	2	Decrease
				Utilization rate	28.6	%	95.0	%	86.1	%	3	Increase

1 The nonperformance risk weighted average is based on the cash flows underlying the market risk benefit reserve.
2 The option budget and surrender rate weighted averages are calculated based on projected account values.
3 The utilization of GLWB withdrawals represents the estimated percentage of policyholders that are expected to use their income rider over the duration of the contract, with the weighted average based on current account values.