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Future Policy Benefit Reserves | 3 Months Ended
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Mar. 31, 2025
Insurance [Abstract] |
Future Policy Benefit Reserves | Future Policy Benefits Reserves Future policy benefits reserves are associated with the Company's run-off long-term care business, which is included in the Life & Group segment, and relate to policyholders that are currently receiving benefits, including claims that have been incurred but are not yet reported, as well as policyholders that are not yet receiving benefits. Future policy benefits reserves are comprised of the liability for future policyholder benefits (LFPB) which is reflected as Insurance reserves: Future policy benefits on the Condensed Consolidated Balance Sheets. The determination of Future policy benefits reserves requires management to make estimates and assumptions about expected policyholder experience over the remaining life of the policy. Since policies may be in force for several decades, these assumptions are subject to significant estimation risk. As a result of this variability, the Company’s future policy benefits reserves may be subject to material increases if actual experience develops adversely to the Company’s expectations. See Note A to the Consolidated Financial Statements within CNAF's Annual Report on Form 10-K for the year ended December 31, 2024 for further information on the long-term care reserving process. The following table summarizes balances and changes in the LFPB.
| (In millions) | 2025 |  | 2024
| Present value of future net premiums |  |  |
| Balance, January 1 | $ | 3,425 |  |  | $ | 3,710 |
Effect of changes in discount rate | (7) |  |  | (125) |
Balance, January 1, at original locked in discount rate | 3,418 |  |  | 3,585 |
Effect of changes in cash flow assumptions (1) | — |  |  | — |
Effect of actual variances from expected experience (1) | 5 |  |  | (28) |
Adjusted balance, January 1 | 3,423 |  |  | 3,557 |
Interest accrual | 44 |  |  | 47 |
Net premiums: earned during period | (101) |  |  | (107) |
Balance, end of period at original locked in discount rate | 3,366 |  |  | 3,497 |
Effect of changes in discount rate | 38 |  |  | 56 |
Balance, March 31 | $ | 3,404 |  |  | $ | 3,553 |
| Present value of future benefits & expenses |  |  |
| Balance, January 1 | $ | 16,583 |  |  | $ | 17,669 |
Effect of changes in discount rate | 440 |  |  | (578) |
Balance, January 1, at original locked in discount rate | 17,023 |  |  | 17,091 |
Effect of changes in cash flow assumptions (1) | — |  |  | — |
Effect of actual variances from expected experience (1) | 13 |  |  | (13) |
Adjusted balance, January 1 | 17,036 |  |  | 17,078 |
Interest accrual | 229 |  |  | 231 |
Benefit & expense payments | (293) |  |  | (321) |
Balance, end of period at original locked in discount rate | 16,972 |  |  | 16,988 |
Effect of changes in discount rate | (264) |  |  | 78 |
Balance, March 31 | $ | 16,708 |  |  | $ | 17,066 |
| Net LFPB | $ | 13,304 |  |  | $ | 13,513 |
(1) As of March 31, 2025 and 2024 the re-measurement gain (loss) of $(8) million and $(15) million presented parenthetically on the Condensed Consolidated Statement of Operations is comprised of the effect of changes in cash flow assumptions and the effect of actual variances from expected experience. The following table presents earned premiums and interest accretion associated with the Company’s long-term care business recognized on the Condensed Consolidated Statement of Operations.
Periods ended March 31 |  |  | Three Months
(In millions) |  |  |  |  | 2025 |  | 2024
Earned premiums |  |  |  |  | $ | 106 |  |  | $ | 110 |
Interest accretion |  |  |  |  | 185 |  |  | 184 |
The following table presents undiscounted expected future benefit and expense payments, and undiscounted expected future gross premiums.
| As of March 31
(In millions) | 2025 |  | 2024
Expected future benefit and expense payments | $ | 31,433 |  |  | $ | 32,474 |
Expected future gross premiums | 5,089 |  |  | 5,270 |
Discounted expected future gross premiums at the upper-medium grade fixed income instrument yield discount rate were $3,550 million and $3,664 million as of March 31, 2025 and 2024. The weighted average effective duration of the LFPB calculated using the original locked in discount rate was 11 years as of March 31, 2025 and 2024. The weighted average interest rates in the table below are calculated based on the rate used to discount all future cash flows.
| As of March 31 |  | As of December 31
| 2025 |  | 2024 |  | 2024
Original locked in discount rate | 5.19 | % |  | 5.22 | % |  | 5.20 | %
Upper-medium grade fixed income instrument discount rate | 5.40 |  |  | 5.20 |  |  | 5.51 |
For the three months ended March 31, 2025 and 2024, immediate charges to net income resulting from adverse development in certain cohorts where the Net Premium Ratio (NPR) exceeded 100% were $14 million and $20 million. For the three months ended March 31, 2025 and 2024, the portion of losses recognized in a prior period due to NPR exceeding 100% for certain cohorts which, due to favorable development, was reversed through net income was $6 million and $2 million.

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- Definition The entire disclosure for long duration contracts. This may include the information pertinent to an understanding of the types of traditional and nontraditional insurance and investment contracts sold and serviced, including the nature and amount of estimated guaranteed obligations pertaining to such contracts and the assumptions underlying such estimated amounts, hedging strategies, and sales inducements offered. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Topic 944 -SubTopic 40 -Name Accounting Standards Codification -Section 65 -Paragraph 2 -Subparagraph (u) -Publisher FASB -URI https://asc.fasb.org/1943274/2147480016/944-40-65-2 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Topic 944 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/944/tableOfContent + Details
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