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Life Policy and Investment Contract Reserves (Tables)

9 Months Ended

Sep. 30, 2025

Policyholder Account Balance [Abstract]

Reserve For Losses Loss Adjustment Expenses Table

The following table summarizes our life policy and investment contract reserves and provides a reconciliation of the balances described in the below tables to those in the condensed consolidated balance sheets:

(Dollars in millions)						September 30, 2025						December 31, 2024
Life policy reserves:
Term						$	1,099					$	1,051
Whole life						430						405
Other						99						98
Subtotal						1,628						1,554
Investment contract reserves:
Deferred annuities						565						595
Universal life						588						586
Structured settlements						112						116
Other						110						109
Subtotal						1,375						1,406
Total life policy and investment contract reserves						$	3,003					$	2,960

Liability for Future Policy Benefit, Activity

The balances and changes in the term and whole life policy reserves included in life policy and investment contract reserves are as follows:

(Dollars in millions)						Three months ended September 30,
						2025												2024
						Term						Whole life						Term						Whole life
Present value of expected net premiums:
Balance, beginning of period						$	1,678					$	220					$	1,620					$	215
Beginning balance at original discount rate						1,731						226						1,701						225
Effect of changes in cash flow assumptions						—						—						(1)						(1)
Effect of actual variances from expected experience						(11)						1						(4)						—
Adjusted beginning of period balance						1,720						227						1,696						224
Issuances						44						7						34						9
Interest accrual						19						2						20						2
Net premiums collected						(45)						(8)						(45)						(8)
Ending balance at original discount rate						1,738						228						1,705						227
Effect of changes in discount rate assumptions						(27)						(3)						3						—
Balance, end of period						1,711						225						1,708						227
Present value of expected future policy benefits:
Balance, beginning of period						2,720						634						2,634						619
Beginning balance at original discount rate						2,821						651						2,772						636
Effect of changes in cash flow assumptions						—						(1)						(1)						(2)
Effect of actual variances from expected experience						(16)						1						(7)						(1)
Adjusted beginning of period balance						2,805						651						2,764						633
Issuances						44						7						34						8
Interest accrual						32						8						32						8
Benefits paid						(37)						(9)						(48)						(8)
Ending balance at original discount rate						2,844						657						2,782						641
Effect of changes in discount rate assumptions						(52)						(3)						12						27
Balance, end of period						2,792						654						2,794						668
Net liability for future policy benefits:
Present value of expected future policy benefits less expected net premiums						1,081						429						1,086						441
Impact of flooring at cohort level						18						1						22						—
Net life policy reserves						1,099						430						1,108						441
Less reinsurance recoverable at original discount rate						(67)						(25)						(92)						(25)
Less effect of discount rate assumption changes on reinsurance recoverable						(8)						(4)						(10)						(5)
Net life policy reserves, after reinsurance recoverable						$	1,024					$	401					$	1,006					$	411
Weighted-average duration of the net life policy reserves in years						11						15						11						16

(Dollars in millions)						Nine months ended September 30,
						2025												2024
						Term						Whole life						Term						Whole life
Present value of expected net premiums:
Balance, beginning of period						$	1,638					$	218					$	1,700					$	223
Beginning balance at original discount rate						1,719						228						1,712						225
Effect of changes in cash flow assumptions						(4)						—						(13)						—
Effect of actual variances from expected experience						(14)						—						(23)						(3)
Adjusted beginning of period balance						1,701						228						1,676						222
Issuances						120						14						110						20
Interest accrual						57						7						56						7
Net premiums collected						(140)						(21)						(137)						(22)
Ending balance at original discount rate						1,738						228						1,705						227
Effect of changes in discount rate assumptions						(27)						(3)						3						—
Balance, end of period						1,711						225						1,708						227
Present value of expected future policy benefits:
Balance, beginning of period						2,668						623						2,751						657
Beginning balance at original discount rate						2,812						646						2,765						628
Effect of changes in cash flow assumptions						(12)						(1)						(30)						—
Effect of actual variances from expected experience						(22)						—						(35)						(5)
Adjusted beginning of period balance						2,778						645						2,700						623
Issuances						120						14						110						20
Interest accrual						96						25						94						24
Benefits paid						(150)						(27)						(122)						(26)
Ending balance at original discount rate						2,844						657						2,782						641
Effect of changes in discount rate assumptions						(52)						(3)						12						27
Balance, end of period						2,792						654						2,794						668
Net liability for future policy benefits:
Present value of expected future policy benefits less expected net premiums						1,081						429						1,086						441
Impact of flooring at cohort level						18						1						22						—
Net life policy reserves						1,099						430						1,108						441
Less reinsurance recoverable at original discount rate						(67)						(25)						(92)						(25)
Less effect of discount rate assumption changes on reinsurance recoverable						(8)						(4)						(10)						(5)
Net life policy reserves, after reinsurance recoverable						$	1,024					$	401					$	1,006					$	411
Weighted-average duration of the net life policy reserves in years						11						15						11						16

The total impact of flooring at cohort level in the above tables includes the effect of discount rate assumption changes of $2 million and $3 million at September 30, 2025 and 2024, respectively.

The following table shows the amount of undiscounted and discounted expected future benefit payments and expected gross premiums for our term and whole life policies:

(Dollars in millions)						At September 30,
						2025												2024
						Undiscounted						Discounted						Undiscounted						Discounted
Term
Expected future benefit payments						$	4,996					$	2,792					$	4,840					$	2,794
Expected future gross premiums						4,675						2,764						4,524						2,736
Whole life
Expected future benefit payments						$	1,729					$	654					$	1,702					$	668
Expected future gross premiums						698						427						687						428

The following table shows the amount of revenue and interest recognized in the condensed consolidated statements of income related to our term and whole life policies:

(Dollars in millions)						Three months ended September 30,												Nine months ended September 30,
						2025						2024						2025						2024
Gross premiums
Term						$	76					$	72					$	227					$	221
Whole life						14						15						41						41
Total						$	90					$	87					$	268					$	262
Interest accretion
Term						$	13					$	12					$	39					$	38
Whole life						6						6						18						17
Total						$	19					$	18					$	57					$	55

Adverse development that resulted in an immediate charge to income due to net premiums exceeding gross premiums was immaterial for the nine months ended September 30, 2025, and 2024.

The following table shows the weighted-average interest rate for our term and whole life products:

						At September 30,
						2025						2024
Term
Interest accretion rate						5.22		%				5.21		%
Current discount rate						4.78						4.53
Whole life
Interest accretion rate						5.85		%				5.89		%
Current discount rate						5.51						5.14

The discount rate assumption was developed by calculating forward rates from market yield curves of upper-medium grade fixed-income instruments.

Policyholder Account Balance

The following table shows the balances and changes in policyholders' account balances included in investment contract reserves:

(Dollars in millions)			Three months ended September 30,																								Nine months ended September 30,
			2025												2024												2025												2024
			Deferred annuity						Universal life						Deferred annuity						Universal life						Deferred annuity						Universal life						Deferred annuity						Universal life
Balance, beginning of period			$	575					$	454					$	618					$	456					$	595					$	456					$	656					$	457
Premiums received			7						8						10						9						19						27						29						28
Policy charges			—						(10)						—						(10)						—						(30)						—						(30)
Surrenders and withdrawals			(15)						(3)						(25)						(2)						(50)						(9)						(88)						(9)
Benefit payments			(7)						(1)						(4)						(1)						(15)						(6)						(9)						(4)
Interest credited			5						5						6						4						16						15						17						14
Balance, end of period			$	565					$	453					$	605					$	456					$	565					$	453					$	605					$	456
Weighted average crediting rate			3.71		%				4.43		%				3.64		%				4.36		%				3.71		%				4.43		%				3.64		%				4.36		%
Net amount at risk			$	—					$	3,719					$	—					$	3,865					$	—					$	3,719					$	—					$	3,865
Cash surrender value			559						426						599						426						559						426						599						426

Policyholder Account Balance, Guaranteed Minimum Crediting Rate

The following table shows the balance of account values by range of guaranteed minimum crediting rates, in basis points, and the related range of the difference between rates being credited to policyholders and the respective guaranteed minimums for our deferred annuity and universal life contracts:

(Dollars in millions)						At guaranteed minimum						1 to 50 basis points above						51-150 basis points above						Greater than 150 basis points						Total
At September 30, 2025
Deferred annuity
1.00-3.00%						$	63					$	205					$	14					$	237					$	519
3.01-4.00%						46						—						—						—						46
Total						$	109					$	205					$	14					$	237					$	565
Universal life
1.00-3.00%						$	—					$	54					$	57					$	15					$	126
3.01-4.00%						51						—						4						—						55
Greater than 4.00%						272						—						—						—						272
Total						$	323					$	54					$	61					$	15					$	453
At September 30, 2024
Deferred annuity
1.00-3.00%						$	4					$	309					$	14					$	231					$	558
3.01-4.00%						47						—						—						—						47
Total						$	51					$	309					$	14					$	231					$	605
Universal life
1.00-3.00%						$	—					$	55					$	64					$	5					$	124
3.01-4.00%						50						—						4						—						54
Greater than 4.00%						278						—						—						—						278
Total						$	328					$	55					$	68					$	5					$	456

Additional Liability, Long-Duration Insurance

The following table shows the balances and changes in the other additional liability related to the no-lapse guarantees contained within our universal life contracts:

(Dollars in millions)			Three months ended September 30,												Nine months ended September 30,
			2025						2024						2025						2024
Balance, beginning of period			$	132					$	128					$	130					$	128
Balance, beginning of period before shadow reserve adjustments			133						130						131						129
Effect of changes in cash flow assumptions			(1)						—						(1)						(2)
Effect of actual variances from expected experience			1						—						3						—
Adjusted beginning of period balance			133						130						133						127
Interest accrual			1						1						3						3
Excess death benefits			(2)						(2)						(11)						(5)
Attributed assessments			3						3						9						9
Effect of changes in interest rate assumptions			1						3						2						1
Balance, end of period before shadow reserve adjustments			136						135						136						135
Shadow reserve adjustments			(1)						(1)						(1)						(1)
Balance, end of period			135						134						135						134
Less reinsurance recoverable, end of period			6						6						6						6
Net other additional liability, after reinsurance recoverable			$	141					$	140					$	141					$	140
Weighted-average duration of the other additional liability in years			26						29						26						29

Separate Account, Liability

The following table shows balances and changes in separate accounts liability balances during the period:

(Dollars in millions)						Three months ended September 30,												Nine months ended September 30,
						2025						2024						2025						2024
Balance, beginning of period						$	991					$	948					$	952					$	925
Interest credited before policy charges						12						10						34						31
Benefit payments						(1)						—						(9)						(3)
Other						(31)						(15)						(6)						(10)
Balance, end of period						$	971					$	943					$	971					$	943
Cash surrender value						$	969					$	941					$	969					$	941

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Tabular disclosure of present value of total expected payment to policyholder in excess of present value of total expected assessment from application of revised benefit ratio as of contract issue date. Excludes benefit classified as market risk benefit or under provisions of Topic 815 on derivative and hedging.

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