| Liability for Future Policy Benefit, Activity |
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 | % |
(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. 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 | % |
(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 – 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 | % |
(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. 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 | | 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 | | 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 | |
During the nine months ended September 30, 2026, no material charges were incurred resulting from net premiums exceeding gross premiums. During the nine months ended September 30, 2025, the Company incurred a material charge of $117 million due to net premiums exceeding gross premiums for one cohort in the U.K. (EMEA Traditional segment) as a result of updating the mortality assumptions in that period.
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