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FUTURE POLICY BENEFITS
 6 Months Ended
Jun. 30, 2025
Insurance [Abstract]  
FUTURE POLICY BENEFITS FUTURE POLICY BENEFITS
The reconciliation of the balances described in the table below to the “Future policy benefits” in the statements of financial position is as follows.
AS OF
US$ MILLIONS		June 30, 2025December 31, 2024
Future policy benefits:
Annuities$11,287 $10,287 
Life Insurance1,895 1,816 
Deferred profit liability:
Annuities252 242 
Life Insurance86 76 
Other contracts and VOBA liability1,684 1,667 
Total future policy benefits$15,204 $14,088 
The balances and changes in the liability for future policy benefits are as follows:
AS OF AND FOR THE SIX MONTHS ENDED JUN. 30, 2025
US$ MILLIONS		AnnuitiesLife InsuranceTotal
Present value of expected net premiums:
Balance, beginning of period$— $2,353 $2,353 
Beginning balance at original discount rate— 2,507 2,507 
Effect of changes in cash flow assumptions— 65 65 
Effect of actual variances from expected experience(1)(55)(56)
Adjusted beginning of period balance(1)2,517 2,516 
Issuances742 5 747 
Interest accrual5 48 53 
Net premiums collected(749)(148)(897)
Derecognitions (lapses and withdrawals)3 — 3 
Ending balance at original discount rate— 2,422 2,422 
Effect of changes in discount rate assumptions— (114)(114)
Balance, end of period$— $2,308 $2,308 
Present value of expected future policy benefits:
Balance, beginning of period$10,287 $4,169 $14,456 
Beginning balance at original discount rate10,518 4,601 15,119 
Effect of changes in cash flow assumptions(1)
15 77 92 
Effect of actual variances from expected experience(43)(56)(99)
Adjusted beginning of period balance10,490 4,622 15,112 
Issuances745 5 750 
Interest accrual238 89 327 
Benefit payments(436)(153)(589)
Derecognitions (lapses and withdrawals)28 — 28 
Foreign currency translation384 — 384 
Ending balance at original discount rate11,449 4,563 16,012 
Effect of changes in discount rate assumptions(162)(360)(522)
Balance, end of period$11,287 $4,203 $15,490 
Net liability for future policy benefits11,287 1,895 13,182 
Less: Reinsurance recoverables(12)(1,311)(1,323)
Net liability for future policy benefits, after reinsurance recoverable$11,275 $584 $11,859 
Weighted average liability duration of future policy benefits (years)714
Weighted average interest accretion rate5 %5 %
Weighted average current discount rate5 %6 %
__________________________
(1)For the three months and six months ended June 30, 2025, the Company recognized liability remeasurement losses of $11 million and $31 million, respectively, from the net effect of the changes in cash flow assumptions, which were included in “Policyholder benefits and claims incurred” in the statements of operations.
AS OF AND FOR THE SIX MONTHS ENDED JUN. 30, 2024
US$ MILLIONS		AnnuitiesLife InsuranceTotal
Present value of expected net premiums:
Balance, beginning of period$— $3,145 $3,145 
Beginning balance at original discount rate— 3,253 3,253 
Effect of changes in cash flow assumptions— (62)(62)
Effect of actual variances from expected experience6 (34)(28)
Adjusted beginning of period balance6 3,157 3,163 
Issuances1,280 32 1,312 
Interest accrual9 62 71 
Net premiums collected(1,295)(162)(1,457)
Derecognitions (lapses and withdrawals)— 1 1 
Ending balance at original discount rate— 3,090 3,090 
Effect of changes in discount rate assumptions— (235)(235)
Balance, end of period$— $2,855 $2,855 
Present value of expected future policy benefits:
Balance, beginning of period$5,731 $5,040 $10,771 
Beginning balance at original discount rate5,909 5,277 11,186 
Effect of changes in cash flow assumptions(1)
12 74 86 
Effect of actual variances from expected experience19 (33)(14)
Adjusted beginning of period balance5,940 5,318 11,258 
Acquisition from business combination311 — 311 
Issuances1,287 32 1,319 
Interest accrual144 101 245 
Benefit payments(312)(228)(540)
Derecognitions (lapses and withdrawals)1 1 2 
Foreign currency translation(114)— (114)
Ending balance at original discount rate7,257 5,224 12,481 
Effect of changes in discount rate assumptions(353)(505)(858)
Balance, end of period$6,904 $4,719 $11,623 
Net liability for future policy benefits6,904 1,864 8,768 
Less: Reinsurance recoverables(35)(46)(81)
Net liability for future policy benefits, after reinsurance recoverable$6,869 $1,818 $8,687 
Weighted average liability duration of future policy benefits (years)816
Weighted average interest accretion rate5 %5 %
Weighted average current discount rate5 %6 %
__________________________
(1)For the three months and six months ended June 30, 2024, the Company recognized liability remeasurement losses of $48 million and $60 million, respectively, from the net effect of the changes in cash flow assumptions, which were included in “Policyholder benefits and claims incurred” in the statements of operations.
The amounts of undiscounted and discounted expected gross premiums and future benefit payments follow:
AS OF JUN. 30
US$ MILLIONS		20252024
UndiscountedDiscountedUndiscountedDiscounted
Annuities:
Expected future benefit payments$18,614 $11,262 $11,414 $6,877 
Expected future gross premiums— — — — 
Life Insurance:
Expected future benefit payments$8,675 $4,203 $10,375 $4,799 
Expected future gross premiums5,482 3,259 14,649 8,507 
Total:
Expected future benefit payments$27,289 $15,465 $21,789 $11,676 
Expected future gross premiums5,482 3,259 14,649 8,507 
The amount of revenue and interest recognized in the statements of operations follows:
FOR THE PERIODS ENDED JUN. 30
US$ MILLIONS		Three Months EndedSix Months Ended
Gross Premiums or AssessmentsInterest ExpenseGross Premiums or AssessmentsInterest Expense
20252024202520242025202420252024
Annuities$338 $1,313 $105 $137 $761 $2,005 $221 $203 
Life Insurance101 222 21 39 206 335 41 59 
LIABILITY FOR UNPAID CLAIMS AND CLAIM ADJUSTMENT EXPENSES
The liability for unpaid claims and claim adjustment expenses (“unpaid claims”) for property and casualty insurance is included in “Policy and contract claims” in the statements of financial position and is the amount estimated for incurred but not reported claims (“IBNR”) claims and claims that have been reported but not settled (“case reserves”), as well as associated claim adjustment expenses.
Information regarding the liability for unpaid claims is shown below:
AS OF AND FOR THE SIX MONTHS ENDED JUN. 30
US$ MILLIONS		20252024
Policy and contract claims, beginning$7,659 $7,288 
Less: Unpaid claims balance, beginning – long-duration219 198 
Gross unpaid claims balance, beginning – short-duration7,440 7,090 
Less: Reinsurance recoverables, beginning3,083 3,045 
Less: Foreign currency translation1 4 
Net balance, beginning – short-duration4,356 4,041 
Add: incurred related to
Current accident year896 1,177 
Prior accident years20 34 
Total incurred claims916 1,211 
Less: paid claims related to
Current accident year296 306 
Prior accident years655 776 
Total paid claims951 1,082 
Net unpaid claims balance, ending – short-duration4,321 4,170 
Add: Foreign currency translation1 2 
Add: Reinsurance recoverables, ending2,945 3,026 
Gross unpaid claims balance, ending – short-duration7,267 7,198 
Add: Unpaid claims balance, ending – long-duration253 199 
Policy and contract claims, ending$7,520 $7,397 
The estimates for ultimate incurred claims attributable to insured events of prior years increased by $20 million and increased by $34 million, respectively, for the six months ended June 30, 2025 and 2024. The unfavorable development during the period in 2025 was primarily related to higher-than-anticipated losses within certain casualty lines, which were partially offset by favorable development in our specialty lines. The unfavorable development during the period in 2024 was primarily related to higher-than-anticipated losses within certain run-off lines.
For short-duration health insurance claims, the total of IBNR plus expected development on reported claims included in the liability for unpaid claims as of June 30, 2025 and December 31, 2024 were $8 million and $7 million, respectively.