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Future Policy Benefits
 6 Months Ended
Jun. 30, 2025
Insurance [Abstract]  
Future Policy Benefits Future Policy Benefits
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:
Traditional life
June 30, 2025December 31, 2024
Expected net premiums(Dollars in millions)
Balance, beginning of year$631 $722 
Beginning balance at original discount rate780 874 
     Effect of actual variances from expected experience1 (4)
Balance adjusted for variances from expectation781 870 
     Interest accrual8 17 
     Net premiums collected(49)(107)
Ending balance at original discount rate740 780 
     Effect of changes in discount rate assumptions(129)(149)
Balance, end of period$611 $631 
Expected FPB
Balance, beginning of year$1,933 $2,071 
Beginning balance at original discount rate2,368 2,492 
     Effect of actual variances from expected experience— 44 
Balance adjusted for variances from expectation2,368 2,536 
     Interest accrual26 54 
     Benefits payments(115)(222)
Ending balance at original discount rate2,279 2,368 
     Effect of changes in discount rate assumptions(365)(435)
Balance, end of period$1,914 $1,933 
Net liability for future policy benefits$1,303 $1,302 
Less: Reinsurance recoverable509 513 
Net liability for future policy benefits, after reinsurance recoverable$794 $789 
Weighted-average duration of liability for future policyholder benefits (years)6.196.28
The following tables summarize balances and changes in the present value of the expected FPB for limited-payment contracts:
PRT
June 30, 2025December 31, 2024
(Dollars in millions)
Balance, beginning of year$6,054 $4,189 
Beginning balance at original discount rate6,417 4,351 
     Effect of changes in cash flow assumptions(25)(3)
     Effect of actual variances from expected experience(8)(11)
Balance adjusted for variances from expectation6,384 4,337 
     Issuances797 2,324 
     Interest accrual154 240 
     Benefits payments(316)(484)
Ending balance at original discount rate7,019 6,417 
     Effect of changes in discount rate assumptions(247)(363)
Balance, end of period$6,772 $6,054 
Net liability for future policy benefits, after reinsurance recoverable$6,772 $6,054 
Weighted-average duration of liability for future policyholder benefits (years)7.767.78

Immediate annuities
June 30, 2025December 31, 2024
(Dollars in millions)
Balance, beginning of year$1,297 $1,415 
Beginning balance at original discount rate1,732 1,788 
     Effect of changes in cash flow assumptions— — 
     Effect of actual variances from expected experience(9)(27)
Balance adjusted for variances from expectation1,723 1,761 
     Issuances13 30 
     Interest accrual27 59 
     Benefits payments(57)(118)
Ending balance at original discount rate1,706 1,732 
     Effect of changes in discount rate assumptions(417)(435)
Balance, end of period$1,289 $1,297 
Net liability for future policy benefits$1,289 $1,297 
Less: Reinsurance recoverable109 109 
Net liability for future policy benefits, after reinsurance recoverable$1,180 $1,188 
Weighted-average duration of liability for future policyholder benefits (years)12.4312.63
The following tables summarize balances and changes in the liability for Deferred Profit Liability ("DPL") for limited-payment contracts:
June 30, 2025December 31, 2024
Immediate annuitiesPRTImmediate annuitiesPRT
(In millions)
Balance, beginning of year$90 $6 $87 $10 
     Effect of modeling changes— — — — 
     Effect of changes in cash flow assumptions— — — (8)
     Effect of actual variances from expected experience1 1 8 — 
Balance adjusted for variances from expectation91 7 95 2 
     Issuances4 — 3 1 
     Interest accrual1 — 1 4 
     Amortization(4)— (9)(1)
Balance, end of period$92 $7 $90 $6 
The following table reconciles the net FPB to the FPB in the unaudited Condensed Consolidated Balance Sheets. 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:
June 30, 2025December 31, 2024
(In millions)
Traditional life$1,303 $1,302 
Immediate annuities1,289 1,297 
PRT6,772 6,054 
Immediate annuities DPL92 90 
PRT DPL7 6 
Total$9,463 $8,749 
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:
UndiscountedDiscounted
June 30,June 30,
2025202420252024
Traditional life(In millions)
Expected future benefit payments$2,657 $2,907 $1,920 $2,021 
Expected future gross premiums896 1,012 658 723 
Immediate annuities
Expected future benefit payments$3,147 $3,233 $1,289 $1,321 
Expected future gross premiums— — — — 
PRT
Expected future benefit payments$11,059 $9,100 $6,772 $5,181 
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 Earnings:
Gross Premiums (a)Interest Expense (b)
June 30,June 30,
2025202420252024
(In millions)
Traditional life$50 $57 $18 $18 
Immediate annuities12 12 27 30 
PRT743 908 154 109 
Total$805 $977 $199 $157 
(a) Included in Life insurance premiums and other fees on the unaudited Condensed Consolidated Statements of Earnings.
(b) Included in Benefits and other changes in policy reserves on the unaudited Condensed Consolidated Statements of Earnings.
The following table presents the weighted-average interest rate:
June 30, 2025December 31, 2024
Traditional life
Interest accretion rate2.35 %2.34 %
Current discount rate5.02 %5.44 %
Immediate annuities
Interest accretion rate3.20 %3.17 %
Current discount rate5.36 %5.45 %
PRT
Interest accretion rate4.83 %4.72 %
Current discount rate5.31 %5.54 %
The following tables summarize the actual experience and expected experience for mortality and lapses of the FPB:
June 30, 2025
Traditional lifeImmediate annuities PRT
Mortality
Actual experience2.0 %3.0 %3.1 %
Expected experience1.6 %1.7 %2.5 %
Lapses
Actual experience— %— %— %
Expected experience0.6 %— %— %
December 31, 2024
Traditional lifeImmediate annuities PRT
Mortality
Actual experience1.4 %2.7 %2.7 %
Expected experience1.5 %1.9 %2.5 %
Lapses
Actual experience0.1 %— %— %
Expected experience0.5 %— %— %

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):
June 30, 2025
Cohort XDescription
NPR before capping107 %Term with return of premium Non-NY Cohort
Reserves before NPR capping$1,154 Term with return of premium Non-NY Cohort
Reserves after NPR capping1,174 Term with return of premium Non-NY Cohort
Loss Expense20 Term with return of premium Non-NY Cohort
F&G made changes to assumptions during the six months ended June 30, 2025 and the year ended December 31, 2024. 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 2025, no updates have been made to any significant assumptions used in the FPB liability. In 2024, F&G made an adjustment to the calculation to reflect additional actuarial precision, unrelated to the assumptions, driving an increase to the FPB liability.
Market data that underlies current discount rates was updated in 2025 from that utilized in 2024 resulting in decreased discount rates that drove an increase to the FPB. Market data that underlies current discount rates was updated in 2024 from that utilized in 2023 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 2024, 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 2025 from that utilized in 2024 resulting in decreased discount rates that drove an increase to the FPB. Market data that underlies current discount rates was updated in 2024 from that utilized in 2023 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 2025 and 2024, 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 2024, 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 2025 from that utilized in 2024 resulting in decreased discount rates that drove an increase to the FPB. Market data that underlies current discount rates was updated in 2024 from that utilized in 2023 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. During 2024, F&G did not pass premium deficiency testing for the traditional life block of business, related to the recoverability of VOBA. Due to that result, 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 June 30, 2025 and December 31, 2024.