Future Policy Benefits

9 Months Ended

Sep. 30, 2026

The following table summarizes balances and changes in the present value of expected net premiums and the present value of the expected FPB for nonparticipating traditional contracts (in millions):


	Traditional life
	September 30, 2026		December 31, 2025
Expected net premiums
Balance, beginning of year	$	585	$	631
Beginning balance at original discount rate	700		780
Effect of changes in cash flow assumptions	(1)		—
Effect of actual variances from expected experience	(5)		1
Balance adjusted for variances from expectation	694		781

Interest accrual	10		15
Net premiums collected	(65)		(96)

Ending balance at original discount rate	639		700
Effect of changes in discount rate assumptions	(138)		(115)
Balance, end of period	$	501	$	585

Expected FPB
Balance, beginning of year	$	1,855	$	1,933
Beginning balance at original discount rate	2,167		2,368
Effect of changes in cash flow assumptions	(7)		—
Effect of actual variances from expected experience	(10)		(21)
Balance adjusted for variances from expectation	2,150		2,347

Interest accrual	35		50
Benefits payments	(149)		(230)

Ending balance at original discount rate	2,036		2,167
Effect of changes in discount rate assumptions	(404)		(312)
Balance, end of period	$	1,632	$	1,855

Net liability for future policy benefits	$	1,131	$	1,270
Less: Reinsurance recoverable	463		489
Net liability for future policy benefits, after reinsurance recoverable	$	668	$	781

Weighted-average duration of liability for future policyholder benefits (years)	5.77		6.84

The following tables summarize balances and changes in the present value of the expected FPB for limited-payment contracts (in millions):


	PRT
	September 30, 2026		December 31, 2025
Balance, beginning of year	$	8,112	$	6,054
Beginning balance at original discount rate	8,268		6,417
Effect of changes in cash flow assumptions	8		(36)
Effect of actual variances from expected experience	(36)		13
Balance adjusted for variances from expectation	8,240		6,394
Issuances	749		2,206
Interest accrual	305		331
Benefits payments	(619)		(663)

Ending balance at original discount rate	8,675		8,268
Effect of changes in discount rate assumptions	(800)		(156)
Balance, end of period	$	7,875	$	8,112



Net liability for future policy benefits, after reinsurance recoverable	$	7,875	$	8,112

Weighted-average duration of liability for future policyholder benefits (years)	7.31		7.80


	Immediate annuities
	September 30, 2026		December 31, 2025
Balance, beginning of year	$	1,276	$	1,297
Beginning balance at original discount rate	1,679		1,732

Effect of actual variances from expected experience	1		(11)
Balance adjusted for variances from expectation	1,680		1,721
Issuances	15		17
Interest accrual	40		54
Benefits payments	(85)		(113)

Ending balance at original discount rate	1,650		1,679
Effect of changes in discount rate assumptions	(514)		(403)
Balance, end of period	$	1,136	$	1,276

Net liability for future policy benefits	$	1,136	$	1,276
Less: Reinsurance recoverable	98		106
Net liability for future policy benefits, after reinsurance recoverable	$	1,038	$	1,170

Weighted-average duration of liability for future policyholder benefits (years)	11.82		12.32

The following tables summarize balances and changes in the liability for deferred profit liability (“DPL”) for limited-payment contracts (in millions):


	September 30, 2026				December 31, 2025
	Immediate annuities		PRT		Immediate annuities		PRT
Balance, beginning of year	$	90	$	7	$	90	$	6


Effect of actual variances from expected experience	(11)		3		2		1
Balance adjusted for variances from expectation	79		10		92		7
Issuances	13		1		6		1
Interest accrual	1		1		1		—
Amortization	(6)		—		(9)		(1)
Balance, end of period	$	87	$	12	$	90	$	7

The following table reconciles the net FPB to the FPB in the unaudited Condensed Consolidated Balance Sheets (in millions). The DPL for Immediate Annuities and PRT is presented together with the FPB in the unaudited Condensed Consolidated Balance Sheets and has been included as a reconciling item in the table below:


	September 30, 2026		December 31, 2025
Traditional life	$	1,131	$	1,270
Immediate annuities	1,136		1,276
PRT	7,875		8,112
Immediate annuities DPL	87		90
PRT DPL	12		7
Total	$	10,241	$	10,755

The following table provides the amount of undiscounted and discounted expected gross premiums and expected future benefits and expenses for nonparticipating traditional and limited-payment contracts (in millions):


	Undiscounted				Discounted
	September 30,				September 30,
	2026		2025		2026		2025
Traditional life
Expected future benefit payments	$	2,345	$	2,569	$	1,635	$	1,892
Expected future gross premiums	772		875		541		650
Immediate annuities
Expected future benefit payments	$	3,036	$	3,125	$	1,136	$	1,304
Expected future gross premiums	—		—		—		—
PRT
Expected future benefit payments	$	13,682	$	11,809	$	7,875	$	7,363
Expected future gross premiums	—		—		—		—

The following table summarizes the amount of revenue and interest related to nonparticipating traditional and limited-payment contracts recognized in the unaudited Condensed Consolidated Statements of Operations (in millions):


	Gross Premiums (a)				Interest Expense (b)
	September 30,				September 30,
	2026		2025		2026		2025
Traditional life	$	67	$	75	$	25	$	27
Immediate annuities	14		16		40		40
PRT	718		1,279		305		238
Total	$	799	$	1,370	$	370	$	305

(a)Included in Life insurance premiums and other fees on the unaudited Condensed Consolidated Statements of Operations.

(b)Included in Benefits and other changes in policy reserves on the unaudited Condensed Consolidated Statements of Operations.

The following table presents the weighted-average interest rate:


	September 30, 2026		December 31, 2025
Traditional life
Interest accretion rate	2.36	%	2.35	%
Current discount rate	6.10	%	4.77	%
Immediate annuities
Interest accretion rate	3.22	%	3.20	%
Current discount rate	6.24	%	5.29	%
PRT
Interest accretion rate	4.97	%	4.87	%
Current discount rate	6.32	%	4.98	%

The following tables summarize the actual experience and expected experience for mortality and lapses of the FPB:


	September 30, 2026						December 31, 2025
	Traditional life		Immediate annuities		PRT		Traditional life		Immediate annuities		PRT
Mortality
Actual experience	1.8	%	1.7	%	2.9	%	2.4	%	2.4	%	2.6	%
Expected experience	1.7	%	1.7	%	2.5	%	1.6	%	1.7	%	2.5	%
Lapses
Actual experience	0.1	%	—	%	—	%	—	%	—	%	—	%
Expected experience	0.6	%	—	%	—	%	0.6	%	—	%	—	%

The following table provides additional information for periods in which a cohort has a net premium ratio (“NPR”) greater than 100% (and therefore capped at 100%) (dollars in millions):


	September 30, 2026				December 31, 2025
	Cohort X			Description	Cohort X			Description
NPR before capping	102		%	Term with return of premium Non-NY Cohort	104		%	Term with return of premium Non-NY Cohort
Reserves before NPR capping	$	1,027		Term with return of premium Non-NY Cohort	$	1,145		Term with return of premium Non-NY Cohort
Reserves after NPR capping	1,032			Term with return of premium Non-NY Cohort	1,156			Term with return of premium Non-NY Cohort
Loss Expense	5			Term with return of premium Non-NY Cohort	11			Term with return of premium Non-NY Cohort

F&G made changes to assumptions during the nine months ended September 30, 2026 and the year ended December 31, 2025. Significant assumption inputs used in the calculation of our FPB are described below. Refer to the tables above for further details on changes to our FPB.

Traditional life

The traditional life line of business primarily consists of policies that were sold prior to 2010. As this line of business continues to age, benefit payments made from these contracts will be the primary driver of the emergence of reserves, decreasing the reserve balance.

Significant assumption inputs to the calculation of the FPB for traditional life include mortality, lapses (including lapses due to nonpayment of premium and surrenders for cash surrender value), and discount rates (both accretion and current). We review the cash flow assumptions annually, typically in the third quarter. In 2026, we updated the assumption for mortality. The update resulted in a decrease to the FPB liability and the associated reinsurance recoverable. In 2025, we updated the assumptions for surrenders and lapses. These assumption updates resulted in a decrease to the FPB liability for the year ended December 31, 2025. Updates to these assumptions for both periods brought us more in line with our Company and overall industry experience since the prior assumption updates.

Market data that underlies current discount rates was updated in 2026 from that utilized in 2025 resulting in increased discount rates that drove a decrease to the FPB.

Immediate annuities (life contingent)

Significant assumption inputs to the calculation of the FPB for immediate annuities (life contingent) include mortality and discount rates (both accretion and current). We review the cash flow assumptions annually, typically in the third quarter. In 2025 and 2026, F&G undertook a review of the significant cash flow assumptions and did not

make any changes to mortality. Market data that underlies current discount rates was updated in 2026 from that utilized in 2025 resulting in increased discount rates that drove a decrease to the FPB.

PRT (life contingent)

The PRT line of business has issued a significant volume of contracts for 2026 and 2025, which is the primary impact in increasing the reserve balance in each of those periods.

Significant assumption inputs to the calculation of the FPB for PRT (life contingent) include mortality and discount rates (both accretion and current). Additionally, for PRT contracts with deferred payment streams, retirement age and elected payment form are significant assumptions. We review the cash flow assumptions annually, typically in the third quarter. In 2025 and 2026, F&G undertook a review of the significant cash flow assumptions and did not make any changes to any significant assumptions. Market data that underlies current discount rates was updated in 2026 from that utilized in 2025 resulting in increased discount rates that drove a decrease to the FPB.

Premium deficiency testing

F&G conducts annual premium deficiency testing for its long-duration contracts except for the FPB for nonparticipating traditional and limited-payment contracts. F&G also conducts annual premium deficiency testing for the VOBA of all long-duration contracts. Premium deficiency testing is performed by reviewing assumptions used to calculate the insurance liabilities and determining whether the sum of the existing contract liabilities and the present value of future gross premiums is sufficient to cover the present value of future benefits to be paid to or on behalf of policyholders and settlement costs and recover unamortized present value of future profits. Anticipated investment income, based on F&G’s experience, is considered when performing premium deficiency testing for long-duration contracts. F&G began accruing a liability in the fourth quarter of 2024 that increases the amortization of traditional life VOBA. The liability balance was immaterial at both September 30, 2026 and December 31, 2025.