Future Policy Benefits

9 Months Ended

Sep. 30, 2026

Liability for Future Policy Benefits and Unpaid Claims Disclosure

FUTURE POLICY BENEFITS

It is the Company’s policy to complete its annual assumptions review during the third quarter of each year. However, each period, the Company reviews actual and anticipated experience compared to the assumptions used to compute the liability for future policy benefits and will update those assumptions in the period that indicates an assumption update is necessary.

Traditional Business

Significant assumptions used to compute the liability for future policy benefits for the Traditional business include mortality, morbidity, lapse rates and discount rates (both accretion and current). During the third quarter of 2026, the Company completed its annual assumptions review, which resulted in no change in the Company’s total liability for future policy benefits for its Traditional business. The 2025 annual assumptions review resulted in an $183 million increase in the Company’s liability for future policy benefits for its Traditional business, primarily as a result of updating the mortality and lapse assumptions used to measure the liability for future policy benefits.

The following tables present the balances of and changes in the Company’s liability for future policy benefits for long-duration reinsurance contracts for its Traditional business, which primarily consists of individual life, group life and critical illness reinsurance, for the nine months ended September 30, 2026 and 2025 (dollars in millions). During the first quarter, the Company reclassified amounts previously presented in the “Derecognition” line related to recaptures and treaty amendments that resulted in the termination of an existing treaty and the reissuance under a new treaty to the “Effects of actual variances from expected experience” line in the rollforwards below. Prior periods have been recast to conform with the current presentation. This change in presentation did not affect the consolidated balance sheet, income statement or cash flows previously reported.


For the nine months ended September 30, 2026:	U.S. and Latin America – Traditional			Canada – Traditional			Europe, Middle East and Africa – Traditional			Asia Pacific – Traditional
Present Value of Expected Net Premiums
Beginning of year balance at original discount rate	$	79,828		$	23,247		$	18,353		$	50,206
Effect of changes in cash flow assumptions	(194)			(405)			(50)			521
Effect of actual variances from expected experience	(2,262)			44			561			(314)
Adjusted balance, beginning of year	77,372			22,886			18,864			50,413
Issuances (1)	3,596			430			2,000			4,515
Interest accrual (2)	2,684			596			523			1,116
Net premiums collected (3)	(4,048)			(765)			(1,553)			(1,896)
Foreign currency translation	—			(818)			(304)			385
Ending balance at original discount rate	79,604			22,329			19,530			54,533
Effect of changes in discount rate assumptions	(13,967)			(5,653)			(3,868)			(14,482)
Balance, end of period	$	65,637		$	16,676		$	15,662		$	40,051

Present Value of Expected Future Policy Benefits
Beginning of year balance at original discount rate	$	94,710		$	26,896		$	20,363		$	55,572
Effect of changes in cash flow assumptions	(190)			(425)			(19)			506
Effect of actual variances from expected experience	(2,259)			35			528			(325)
Adjusted balance, beginning of year	92,261			26,506			20,872			55,753
Issuances (1)	3,596			430			2,000			4,504
Interest accrual (2)	3,230			763			566			1,261
Benefit payments (4)	(4,028)			(808)			(1,457)			(1,588)
Foreign currency translation	—			(950)			(346)			367
Ending balance at original discount rate	95,059			25,941			21,635			60,297
Effect of changes in discount rate assumptions	(17,659)			(5,482)			(4,560)			(17,283)
Balance, end of period	$	77,400		$	20,459		$	17,075		$	43,014

Liability for future policy benefits	$	11,763		$	3,783		$	1,413		$	2,963
Less: reinsurance recoverable	(775)			(230)			(13)			(57)
Net liability for future policy benefits	$	10,988		$	3,553		$	1,400		$	2,906

Weighted average duration of the liability (in years)	11			13			8			15
Weighted average interest accretion rate	4.6		%	3.7		%	3.7		%	2.9		%
Weighted average current discount rate	6.4		%	5.5		%	6.5		%	5.1		%

(1)Issuances: The present value, using the original discount rate, of the expected net premiums or the expected future policy benefits related to new insurance contracts that became effective during the current period and new policies assumed on existing contracts during the period.

(2)Interest accrual: The interest earned on the beginning present value of either the expected net premiums or the expected future policy benefits using the original interest rate.

(3)Net premiums collected: The portion of gross premiums collected from the ceding company that is used to fund expected benefit payments.

(4)Benefit payments: The release of the present value, using the original discount rate, of the expected future policy benefits due to death, lapse/withdrawal and other benefit payments based on current assumptions.


For the nine months ended September 30, 2025:	U.S. and Latin America – Traditional			Canada – Traditional			Europe, Middle East and Africa – Traditional			Asia Pacific – Traditional
Present Value of Expected Net Premiums
Beginning of year balance at original discount rate	$	77,881		$	20,928		$	15,911		$	44,801
Effect of changes in cash flow assumptions	(352)			570			38			150
Effect of actual variances from expected experience	(1,279)			70			546			(668)
Adjusted balance, beginning of year	76,250			21,568			16,495			44,283
Issuances (1)	7,821			404			1,106			3,752
Interest accrual (2)	2,688			559			444			952
Net premiums collected (3)	(5,814)			(723)			(1,413)			(1,854)
Foreign currency translation	4			694			1,295			1,582
Ending balance at original discount rate	80,949			22,502			17,927			48,715
Effect of changes in discount rate assumptions	(7,000)			(4,501)			(3,013)			(12,252)
Balance, end of period	$	73,949		$	18,001		$	14,914		$	36,463

Present Value of Expected Future Policy Benefits
Beginning of year balance at original discount rate	$	90,711		$	24,309		$	17,365		$	49,712
Effect of changes in cash flow assumptions	(381)			561			261			148
Effect of actual variances from expected experience	(1,218)			73			536			(733)
Adjusted balance, beginning of year	89,112			24,943			18,162			49,127
Issuances (1)	8,521			404			1,106			3,752
Interest accrual (2)	3,227			719			479			1,086
Benefit payments (4)	(4,502)			(808)			(1,300)			(1,553)
Foreign currency translation	6			808			1,427			1,649
Ending balance at original discount rate	96,364			26,066			19,874			54,061
Effect of changes in discount rate assumptions	(8,917)			(3,934)			(3,590)			(14,609)
Balance, end of period	$	87,447		$	22,132		$	16,284		$	39,452

Liability for future policy benefits	$	13,498		$	4,131		$	1,370		$	2,989
Less: reinsurance recoverable	(834)			(254)			(15)			(78)
Net liability for future policy benefits	$	12,664		$	3,877		$	1,355		$	2,911

Weighted average duration of the liability (in years)	11			14			8			15
Weighted average interest accretion rate	4.6		%	3.7		%	3.5		%	2.8		%
Weighted average current discount rate	5.4		%	4.9		%	5.7		%	4.6		%

(2)Interest accrual: The interest earned on the beginning present value of either the expected net premiums or the expected future policy benefits using the original interest rate.

(3)Net premiums collected: The portion of gross premiums collected from the ceding company that is used to fund expected benefit payments.

The following tables summarize the Company’s Traditional business actual-to-expected variances, including the effects of treaty recaptures, and the effects of changes in cash flow and discount rate assumptions for the nine months ended September 30, 2026 and 2025:

For the nine months ended September 30, 2026:

Segment

Liability for future policy benefits at original discount rate

Changes in cash flow assumptions

Actual-to-expected variance

Impact of updating discount rate recognized in OCI

U.S. and Latin America – Traditional

$15.5 billion

$4 million

$3 million

$(1.5) billion

Canada – Traditional

$3.6 billion

$(20) million

$(9) million

$(323) million

Europe, Middle East and Africa – Traditional

$2.1 billion

$31 million

$(33) million

$(127) million

Asia Pacific – Traditional

$5.8 billion

$(15) million

$(11) million

$(314) million

For the nine months ended September 30, 2025:

Segment

Liability for future policy benefits at original discount rate

Changes in cash flow assumptions

Actual-to-expected variance

Impact of updating discount rate recognized in OCI

U.S. and Latin America – Traditional

$15.4 billion

$(29) million

$61 million

$375 million

Canada – Traditional

$3.6 billion

$(9) million

$3 million

$(152) million

Europe, Middle East and Africa – Traditional

$1.9 billion

$223 million

$(10) million

$(243) million

Asia Pacific – Traditional

$5.3 billion

$(2) million

$(65) million

$(49) million

Financial Solutions Business

Significant assumptions used to compute the liability for future policy benefits for the Financial Solutions business include mortality, morbidity, lapse rates and discount rates (both accretion and current). During the third quarter of 2026 and 2025, the Company completed its annual assumptions review, which resulted in a $17 million increase and $24 million decrease in the Company’s liability for future policy benefits for its Financial Solutions business, respectively, as a result of updating the lapse and mortality assumptions used to measure the liability for future policy benefits.

The following tables present the balances of and changes in the Company’s liability for future policy benefits, including the deferred profit liability related to the longevity business, for its Financial Solutions business, which primarily consists of longevity reinsurance, asset-intensive products (primarily annuities), financial reinsurance and pension risk transfer transactions, for the nine months ended September 30, 2026 and 2025 (dollars in millions). During the first quarter, the Company reclassified amounts previously presented in the “Derecognition” line related to recaptures and treaty amendments that resulted in the termination of an existing treaty and the reissuance under a new treaty to the “Effects of actual variances from expected experience” line in the rollforwards below. Prior periods have been recast to conform with the current presentation. This change in presentation did not affect the consolidated balance sheet, income statement or cash flows previously reported.


For the nine months ended September 30, 2026:	U.S. and Latin America – Financial Solutions			Canada – Financial Solutions			Europe, Middle East and Africa – Financial Solutions			Asia Pacific – Financial Solutions
Present Value of Expected Net Premiums
Beginning of year balance at original discount rate	$	2,627		$	3,518		$	87,259		$	2,106
Effect of changes in cash flow assumptions	11			(13)			—			29
Effect of actual variances from expected experience	(20)			(25)			280			50
Adjusted balance, beginning of year	2,618			3,480			87,539			2,185
Issuances (1)	1,350			—			9,685			6,997
Interest accrual (2)	78			92			2,652			13
Net premiums collected (3)	(1,543)			(265)			(6,318)			(7,574)
Foreign currency translation	—			(119)			(1,653)			(40)
Ending balance at original discount rate	2,503			3,188			91,905			1,581
Effect of changes in discount rate assumptions	(357)			(313)			(15,745)			(921)
Balance, end of period	$	2,146		$	2,875		$	76,160		$	660

Present Value of Expected Future Policy Benefits
Beginning of year balance at original discount rate	$	13,388		$	8,160		$	98,153		$	16,870
Effect of changes in cash flow assumptions	24			(13)			—			33
Effect of actual variances from expected experience	(12)			(25)			261			88
Adjusted balance, beginning of year	13,400			8,122			98,414			16,991
Issuances (1)	1,371			—			9,685			6,997
Interest accrual (2)	479			261			2,964			448
Benefit payments (4)	(1,003)			(368)			(6,017)			(790)
Foreign currency translation	—			(286)			(1,932)			48
Ending balance at original discount rate	14,247			7,729			103,114			23,694
Effect of changes in discount rate assumptions	(1,366)			(655)			(17,214)			(5,434)
Balance, end of period	$	12,881		$	7,074		$	85,900		$	18,260

Cumulative amount of fair value hedging adjustments	$	(43)		$	—		$	—		$	—

Liability for future policy benefits	$	10,692		$	4,199		$	9,740		$	17,600
Less: reinsurance recoverable	(4,706)			—			—			—
Net liability for future policy benefits	$	5,986		$	4,199		$	9,740		$	17,600

Weighted average duration of the liability (in years)	8			11			9			12
Weighted average interest accretion rate	4.4		%	4.1		%	4.0		%	2.0		%
Weighted average current discount rate	6.5		%	5.4		%	6.3		%	5.3		%

(2)Interest accrual: The interest earned on the beginning present value of either the expected net premiums or the expected future policy benefits using the original interest rate.

(3)Net premiums collected: The portion of gross premiums collected from the ceding company that is used to fund expected benefit payments.


For the nine months ended September 30, 2025:	U.S. and Latin America – Financial Solutions			Canada – Financial Solutions			Europe, Middle East and Africa – Financial Solutions			Asia Pacific – Financial Solutions
Present Value of Expected Net Premiums
Beginning of year balance at original discount rate	$	1,346		$	3,614		$	71,360		$	2,758
Effect of changes in cash flow assumptions	—			—			(409)			—
Effect of actual variances from expected experience	(10)			6			(289)			(121)
Adjusted balance, beginning of year	1,336			3,620			70,662			2,637
Issuances (1)	2,118			—			15,195			2,657
Interest accrual (2)	30			99			2,078			31
Net premiums collected (3)	(2,219)			(278)			(7,283)			(3,227)
Foreign currency translation	—			119			6,038			181
Ending balance at original discount rate	1,265			3,560			86,690			2,279
Effect of changes in discount rate assumptions	(194)			(182)			(10,484)			(621)
Balance, end of period	$	1,071		$	3,378		$	76,206		$	1,658

Present Value of Expected Future Policy Benefits
Beginning of year balance at original discount rate	$	9,489		$	7,934		$	78,290		$	14,626
Effect of changes in cash flow assumptions	—			—			(433)			—
Effect of actual variances from expected experience	(13)			6			(308)			(127)
Adjusted balance, beginning of year	9,476			7,940			77,549			14,499
Issuances (1)	2,146			—			15,194			2,666
Interest accrual (2)	396			263			2,298			251
Benefit payments (4)	(784)			(347)			(4,834)			(499)
Foreign currency translation	—			265			6,539			880
Ending balance at original discount rate	11,234			8,121			96,746			17,797
Effect of changes in discount rate assumptions	(332)			(125)			(11,507)			(3,729)
Balance, end of period	$	10,902		$	7,996		$	85,239		$	14,068

Cumulative amount of fair value hedging adjustments	$	8		$	—		$	—		$	—

Liability for future policy benefits	$	9,839		$	4,618		$	9,033		$	12,410
Less: reinsurance recoverable	(1,749)			—			—			—
Net liability for future policy benefits	$	8,090		$	4,618		$	9,033		$	12,410

Weighted average duration of the liability (in years)	9			12			9			14
Weighted average interest accretion rate	4.1		%	4.1		%	3.5		%	1.9		%
Weighted average current discount rate	5.3		%	4.8		%	5.4		%	4.0		%

(2)Interest accrual: The interest earned on the beginning present value of either the expected net premiums or the expected future policy benefits using the original interest rate.

(3)Net premiums collected: The portion of gross premiums collected from the ceding company that is used to fund expected benefit payments.

The following tables summarize the Company’s Financial Solutions business actual-to-expected variances, including the effects of model updates and treaty recaptures, and the effects of changes in cash flow and discount rate assumptions for the nine months ended September 30, 2026 and 2025:

For the nine months ended September 30, 2026:

Segment

Liability for future policy benefits at original discount rate

Changes in cash flow assumptions

Actual-to-expected variance

Impact of updating discount rate recognized in OCI

U.S. and Latin America – Financial Solutions

$11.7 billion

$13 million

$8 million

$(811) million

Canada – Financial Solutions

$4.5 billion

None

$(314) million

Europe, Middle East and Africa – Financial Solutions

$11.2 billion

None

$(19) million

$(578) million

Asia Pacific – Financial Solutions

$22.1 billion

$4 million

$38 million

$(975) million

For the nine months ended September 30, 2025:

Segment

Liability for future policy benefits at original discount rate

Changes in cash flow assumptions

Actual-to-expected variance

Impact of updating discount rate recognized in OCI

U.S. and Latin America – Financial Solutions

$10.0 billion

None

$(3) million

$260 million

Canada – Financial Solutions

$4.6 billion

None

$(135) million

Europe, Middle East and Africa – Financial Solutions

$10.1 billion

$(24) million

$(19) million

$(128) million

Asia Pacific – Financial Solutions

$15.5 billion

None

$(6) million

$(1.5) billion

Reconciliation and Other Disclosures

The following table presents the reconciliation of the rollforward of the liability for future policy benefits to the condensed consolidated balance sheets as of September 30, 2026 and 2025 (dollars in millions):


	September 30,
	2026		2025
Liability for future policy benefits included in the rollforwards:
Traditional:
U.S. and Latin America	$	11,763	$	13,498
Canada	3,783		4,131
Europe, Middle East and Africa	1,413		1,370
Asia Pacific	2,963		2,989
Financial Solutions:
U.S. and Latin America	10,692		9,839
Canada	4,199		4,618
Europe, Middle East and Africa	9,740		9,033
Asia Pacific	17,600		12,410
Other long-duration contracts	138		116
Claims liability and incurred but not reported claims	6,309		5,786
Additional liability	371		235
Unearned revenue liability	764		814
Cost of reinsurance liability	1,553		1,550
Total liability for future policy benefits	$	71,288	$	66,389

The following table presents the amount of undiscounted and discounted expected future gross premiums and expected future benefit payments for the liability for future policy benefits included in the rollforwards as of September 30, 2026 and 2025 (dollars in millions):


	September 30,
	2026				2025
	Undiscounted		Discounted		Undiscounted		Discounted
Expected future gross premiums
Traditional:
U.S. and Latin America	$	193,711	$	79,596	$	194,959	$	88,432
Canada	56,723		20,803		56,351		22,317
Europe, Middle East and Africa	33,936		17,634		30,092		16,513
Asia Pacific	137,965		50,607		113,661		46,387
Financial Solutions:
U.S. and Latin America	5,101		3,009		2,554		1,641
Canada	4,969		3,184		5,676		3,733
Europe, Middle East and Africa	176,568		81,563		157,690		77,444
Asia Pacific	7,530		4,723		5,235		3,471

Expected future benefit payments
Traditional:
U.S. and Latin America	$	199,720	$	77,400	$	203,397	$	87,447
Canada	57,085		20,459		57,445		22,132
Europe, Middle East and Africa	34,293		17,075		30,886		16,284
Asia Pacific	131,768		43,014		109,528		39,452
Financial Solutions:
U.S. and Latin America	27,137		12,881		22,213		10,902
Canada	16,577		7,074		17,625		7,996
Europe, Middle East and Africa	183,642		85,900		170,551		85,239
Asia Pacific	44,136		18,260		30,139		14,068

The following table presents the amount of gross premiums and interest expense recognized in the condensed consolidated statements of income for the liability for future policy benefits included in the rollforwards for the nine months ended September 30, 2026 and 2025 (dollars in millions):


	Gross Premiums				Interest Expense
	September 30,				September 30,
	2026		2025		2026		2025
Traditional:
U.S. and Latin America	$	4,776	$	4,791	$	546	$	539
Canada	869		831		167		160
Europe, Middle East and Africa	1,385		1,341		43		35
Asia Pacific	2,420		2,335		145		134
Financial Solutions:
U.S. and Latin America	1,162		177		401		366
Canada	135		143		169		164
Europe, Middle East and Africa	1,064		897		312		220
Asia Pacific	531		325		435		220
Total	$	12,342	$	10,840	$	2,218	$	1,838