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Future Contract Benefits | 6 Months Ended
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Jun. 30, 2025
Liability for Future Policy Benefits and Unpaid Claims and Claims Adjustment Expense [Abstract] |
Future Contract Benefits | Future Contract Benefits The following table reconciles future contract benefits (in millions) to the Consolidated Balance Sheets:
| As of June 30, |  | As of December 31,
| 2025 |  | 2024
Payout Annuities (1) | $ | 2,039 |  |  | $ | 2,009 |
Traditional Life (1) | 3,867 |  |  | 3,774 |
Group Protection (2) | 5,759 |  |  | 5,628 |
UL and Other (3) | 16,989 |  |  | 16,062 |
Other Operations (4) | 9,024 |  |  | 9,070 |
Other (5) | 3,375 |  |  | 3,264 |
Total future contract benefits | $ | 41,053 |  |  | $ | 39,807 |
(1) See “Liability for Future Policy Benefits” below for further information. (2) See “Liability for Future Claims” below for further information. (3) See “Additional Liabilities for Other Insurance Benefits” below for further information. (4) Represents future contract benefits reported in Other Operations primarily attributable to the indemnity reinsurance agreements with Protective ($5.4 billion as of June 30, 2025, and December 31, 2024) and Swiss Re ($1.8 billion as of June 30, 2025, and December 31, 2024) that are excluded from the following tables. (5) Represents other miscellaneous reserves that are not representative of long-duration contracts, primarily related to participating traditional life insurance contracts and incurred but not reported and in course of settlement life insurance liabilities, and are excluded from the following tables. Liability for Future Policy Benefits The liability for future policy benefits represents reserves associated with our limited payment life-contingent annuities and non-participating traditional life insurance contracts (i.e., term insurance). The following table summarizes the balances of and changes in the present values of expected net premiums and expected future policy benefits (in millions, except years):
| As of or For the Six Months Ended June 30, 2025 |  | As of or For the Six Months Ended June 30, 2024
| Payout Annuities |  | Traditional Life |  | Payout Annuities |  | Traditional Life
Present Value of Expected Net Premiums |  |  |  |  |  |  |
Balance as of beginning-of-year | $ | – |  |  | $ | 5,873 |  |  | $ | – |  |  | $ | 6,200 |
Less: Effect of cumulative changes in discount |  |  |  |  |  |  |
rate assumptions | – |  |  | (275) |  |  | – |  |  | (148) |
Beginning balance at original discount rate | – |  |  | 6,148 |  |  | – |  |  | 6,348 |
Effect of actual variances from expected experience (1) | – |  |  | (62) |  |  | – |  |  | (40) |
Adjusted balance as of beginning-of-year | – |  |  | 6,086 |  |  | – |  |  | 6,308 |
Issuances | – |  |  | 141 |  |  | – |  |  | 206 |
Interest accrual | – |  |  | 124 |  |  | – |  |  | 125 |
Net premiums collected | – |  |  | (384) |  |  | – |  |  | (403) |
Flooring impact of LFPB | – |  |  | (7) |  |  | – |  |  | 2 |
Ending balance at original discount rate | – |  |  | 5,960 |  |  | – |  |  | 6,238 |
Effect of cumulative changes in discount |  |  |  |  |  |  |
rate assumptions | – |  |  | (154) |  |  | – |  |  | (321) |
Balance as of end-of-period | $ | – |  |  | $ | 5,806 |  |  | $ | – |  |  | $ | 5,917 |
Present Value of Expected Future Policy Benefits |  |  |  |  |  |  |
Balance as of beginning-of-year | $ | 2,009 |  |  | $ | 9,647 |  |  | $ | 2,085 |  |  | $ | 10,041 |
Less: Effect of cumulative changes in discount |  |  |  |  |  |  |
rate assumptions | (251) |  |  | (438) |  |  | (187) |  |  | (189) |
Beginning balance at original discount rate (2) | 2,260 |  |  | 10,085 |  |  | 2,272 |  |  | 10,230 |
Effect of actual variances from expected experience (1) | (6) |  |  | (82) |  |  | 3 |  |  | (45) |
Adjusted balance as of beginning-of-year | 2,254 |  |  | 10,003 |  |  | 2,275 |  |  | 10,185 |
Issuances | 46 |  |  | 141 |  |  | 39 |  |  | 206 |
Interest accrual | 44 |  |  | 199 |  |  | 43 |  |  | 199 |
Benefit payments | (97) |  |  | (430) |  |  | (98) |  |  | (384) |
Ending balance at original discount rate (2) | 2,247 |  |  | 9,913 |  |  | 2,259 |  |  | 10,206 |
Effect of cumulative changes in discount |  |  |  |  |  |  |
rate assumptions | (208) |  |  | (240) |  |  | (257) |  |  | (506) |
Balance as of end-of-period | $ | 2,039 |  |  | $ | 9,673 |  |  | $ | 2,002 |  |  | $ | 9,700 |
Net balance as of end-of-period | $ | 2,039 |  |  | $ | 3,867 |  |  | $ | 2,002 |  |  | $ | 3,783 |
Less: Reinsurance recoverables | 1,467 |  |  | 345 |  |  | 1,516 |  |  | 403 |
Net balance as of end-of-period, net of reinsurance | $ | 572 |  |  | $ | 3,522 |  |  | $ | 486 |  |  | $ | 3,380 |
Weighted-average duration of future policyholder |  |  |  |  |  |  |
benefit liability (years) | 9 |  | 8 |  | 9 |  | 9
(1) For the six months ended June 30, 2025, the Traditional Life actual to expected reserve impact on expected net premiums was attributable primarily to policyholder behavior and mortality, which unfavorably impacted the liability by $43 million and $19 million, respectively; and the actual to expected reserve impact on expected future policy benefits was attributable primarily to policyholder behavior and mortality, which favorably impacted the liability by $57 million and $25 million, respectively. Fo r the six months ended June 30, 2024, the Traditional Life actual to expected reserve impact on expected net premiums was attributable primarily to mortality, which unfavorably impacted the liability by $43 million, which was partially offset by $3 million primarily related to policyholder behavior; and the actual to expected reserve impact on expected future policy benefits was attributable primarily to mortality, which favorably impacted the liability by $62 million, which was partially offset by $17 million primarily related to policyholder behavior. For the six months ended June 30, 2025 and 2024, Payout Annuities did not have any significantly different actual experience compared to expected. (2) Includes deferred profit liability within Payout Annui ties of $70 million a nd $61 million as of June 30, 2025 and 2024, respectively. The following table summarizes the discounted and undiscounted expected future gross premiums and expected future benefit payments (in millions):
| As of June 30, 2025 |  | As of June 30, 2024
| Undiscounted |  | Discounted |  | Undiscounted |  | Discounted
Payout Annuities |  |  |  |  |  |  |
Expected future gross premiums | $ | – |  |  | $ | – |  |  | $ | – |  |  | $ | – |
Expected future benefit payments | 3,385 |  |  | 2,039 |  |  | 3,437 |  |  | 2,002 |
Traditional Life |  |  |  |  |  |  |
Expected future gross premiums | 13,683 |  |  | 9,422 |  |  | 13,762 |  |  | 9,360 |
Expected future benefit payments | 14,050 |  |  | 9,673 |  |  | 14,526 |  |  | 9,700 |
The following table summarizes the gross premiums and interest accretion (in millions) recognized in insurance premiums and benefits, respectively, on the Consolidated Statements of Comprehensive Income (Loss):
| For the Three Months Ended June 30, |  | For the Six Months Ended June 30,
| 2025 |  | 2024 |  | 2025 |  | 2024
Payout Annuities |  |  |  |  |  |  |
Gross premiums | $ | 25 |  |  | $ | 24 |  |  | $ | 48 |  |  | $ | 45 |
Interest accretion | 22 |  |  | 22 |  |  | 44 |  |  | 43 |
Traditional Life |  |  |  |  |  |  |
Gross premiums | 312 |  |  | 316 |  |  | 626 |  |  | 631 |
Interest accretion | 38 |  |  | 37 |  |  | 75 |  |  | 74 |
The following table summarizes the weighted-average interest rates:
| For the Six Months Ended June 30,
| 2025 |  | 2024
Payout Annuities |  |  |
Interest accretion rate | 4.0 | % |  | 4.0 | %
Current discount rate | 5.2 | % |  | 5.4 | %
Traditional Life |  |  |
Interest accretion rate | 5.0 | % |  | 5.0 | %
Current discount rate | 4.8 | % |  | 5.2 | %
Liability for Future Claims The liability for future claims represents reserves on contracts associated with our group long-term disability and life products. The following table summarizes the balances of and changes in liability for future claims (in millions, except years):
| Group Protection
| As of or For the Six Months Ended June 30,
| 2025 |  | 2024
Balance as of beginning-of-year | $ | 5,628 |  |  | $ | 5,689 |
Less: Effect of cumulative changes in discount |  |  |
rate assumptions | (550) |  |  | (490) |
Beginning balance at original discount rate | 6,178 |  |  | 6,179 |
Effect of actual variances from expected experience (1) | (178) |  |  | (191) |
Adjusted beginning-of-year balance | 6,000 |  |  | 5,988 |
New incidence | 808 |  |  | 838 |
Interest | 100 |  |  | 93 |
Benefit payments | (724) |  |  | (757) |
Ending balance at original discount rate | 6,184 |  |  | 6,162 |
Effect of cumulative changes in discount |  |  |
rate assumptions | (425) |  |  | (592) |
Balance as of end-of-period | 5,759 |  |  | 5,570 |
Less: Reinsurance recoverables | 122 |  |  | 118 |
Balance as of end-of-period, net of reinsurance | $ | 5,637 |  |  | $ | 5,452 |
Weighted-average duration of liability for future |  |  |
claims (years) | 5 |  | 5
(1) Generally, the experience exhibited for the Group Protection business relates to morbidity and, to a lesser extent, mortality. Group Protection long-duration products have limited exposure to lapse risk, as the liabilities for future claims are limited to those associated with claim reserves. For the six months ended June 30, 2025 and 2024, morbidity comprised substantially all of the favorable effect of actual variances from expected experience, as we experienced more favorable reported incidence and claim terminations than assumed. The following table summarizes the discounted and undiscounted expected future benefit payments (in millions):
| As of June 30, 2025 |  | As of June 30, 2024
| Undiscounted |  | Discounted |  | Undiscounted |  | Discounted
Group Protection |  |  |  |  |  |  |
Expected future benefit payments | $ | 7,447 |  |  | $ | 5,759 |  |  | $ | 7,290 |  |  | $ | 5,570 |
The following table summarizes the gross premiums and interest accretion (in millions) recognized in insurance premiums and benefits, respectively, on the Consolidated Statements of Comprehensive Income (Loss):
| For the Three Months Ended June 30, |  | For the Six Months Ended June 30,
| 2025 |  | 2024 |  | 2025 |  | 2024
Group Protection |  |  |  |  |  |  |
Gross premiums | $ | 926 |  |  | $ | 893 |  |  | $ | 1,859 |  |  | $ | 1,789 |
Interest accretion | 50 |  |  | 45 |  |  | 100 |  |  | 93 |
The following table summarizes the weighted-average interest rates:
| For the Six Months Ended June 30,
| 2025 |  | 2024
Group Protection |  |  |
Interest accretion rate | 3.4 | % |  | 3.2 | %
Current discount rate | 4.8 | % |  | 5.2 | %
Additional Liabilities for Other Insurance Benefits Additional liabilities for other insurance benefits represent reserves associated with our UL and VUL contracts with secondary guarantees, including MoneyGuard®. The following table summarizes the balances of and changes in additional liabilities for other insurance benefits (in millions, except years):
| UL and Other
| As of or For the Six Months Ended June 30,
| 2025 |  | 2024
Balance as of beginning-of-year | $ | 16,062 |  |  | $ | 15,000 |
Less: Effect of cumulative changes in shadow |  |  |
balance in AOCI | (2,673) |  |  | (2,222) |
Balance as of beginning-of-year, excluding |  |  |
shadow balance in AOCI | 18,735 |  |  | 17,222 |
Effect of actual variances from expected experience (1) (2) | 117 |  |  | 136 |
Adjusted beginning-of-year balance | 18,852 |  |  | 17,358 |
Interest accrual | 461 |  |  | 421 |
Net assessments collected | 616 |  |  | 575 |
Benefit payments | (532) |  |  | (521) |
Balance as of end-of-period, excluding shadow |  |  |
balance in AOCI | 19,397 |  |  | 17,833 |
Effect of cumulative changes in shadow |  |  |
balance in AOCI | (2,408) |  |  | (3,332) |
Balance as of end-of-period | 16,989 |  |  | 14,501 |
Less: Reinsurance recoverables | 5,385 |  |  | 4,880 |
Balance as of end-of-period, net of reinsurance | $ | 11,604 |  |  | $ | 9,621 |
Weighted-average duration of additional liabilities |  |  |
for other insurance benefits (years) | 16 |  | 16
(1) For the six months ended June 30, 2025 and 2024, the actual to expected reserve impact was attributable primarily to mortality, which unfavorably impacted the liability by $116 million and $138 million, respectively. (2) For the six months ended June 30, 2025 and 2024, the effect of actual variances from expected experience, net of reinsurance, was $35 million and $80 million, respectively. The following table summarizes the gross assessments and interest accretion (in millions) recognized in insurance premiums and benefits, respectively, on the Consolidated Statements of Comprehensive Income (Loss):
| For the Three Months Ended June 30, |  | For the Six Months Ended June 30,
| 2025 |  | 2024 |  | 2025 |  | 2024
UL and Other |  |  |  |  |  |  |
Gross assessments | $ | 787 |  |  | $ | 678 |  |  | $ | 1,487 |  |  | $ | 1,444 |
Interest accretion | 233 |  |  | 212 |  |  | 461 |  |  | 421 |
The following table summarizes the weighted-average interest rates:
| For the Six Months Ended June 30,
| 2025 |  | 2024
UL and Other |  |  |
Interest accretion rate | 5.4 | % |  | 5.4 | %

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- Definition The entire disclosure for liabilities related to future policy benefits and unpaid claims and claim adjustments. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Topic 944 -SubTopic 40 -Name Accounting Standards Codification -Section 50 -Paragraph 3 -Publisher FASB -URI https://asc.fasb.org/1943274/2147480081/944-40-50-3 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Topic 944 -SubTopic 40 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/944-40/tableOfContent + Details
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