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Future Policy Benefits
 6 Months Ended
Jun. 30, 2025
Insurance [Abstract]  
Future Policy Benefits
17. Future Policy Benefits
The reconciliation of the balances described in the table below to the “Future policy benefits” in the Consolidated Statements of Financial Position is as follows.
June 30, 2025December 31, 2024
(Dollars in millions)
Future policy benefits:
Annuities$6,272 $5,532 
Life Insurance1,895 1,816 
Deferred profit liability:
Annuities94 81 
Life Insurance86 76 
Other contracts and VOBA liability1,682 1,665 
Total future policy benefits$10,029 $9,170 
Future Policy Benefits
The balances and changes in the liability for future policy benefits are as follows:
Six Months Ended June 30,
20252024
AnnuitiesLife
Insurance		TotalAnnuitiesLife
Insurance		Total
(Dollars in millions)
Present Value of Expected Net Premiums:
Balance, beginning of period$— $2,353 $2,353 $— $3,145 $3,145 
Beginning balance at original discount rate— 2,507 2,507 — 3,254 3,254 
Effect of changes in cash flow assumptions (1) — 65 65 — (63)(63)
Effect of actual variances from expected experience(1)(55)(56)6 (34)(28)
Adjusted beginning of period balance(1)2,517 2,516 6 3,157 3,163 
Acquisition from business combination— — — — — — 
Issuances666 5 671 991 32 1,023 
Interest accrual5 48 53 6 62 68 
Net premiums collected(673)(148)(821)(1,004)(162)(1,166)
Derecognitions (lapses and withdrawals)3 — 3 — 1 1 
Ending balance at original discount rate— 2,422 2,422 (1)3,090 3,089 
Effect of changes in discount rate assumptions— (114)(114)— (235)(235)
Balance, end of period$— $2,308 $2,308 $(1)$2,855 $2,854 
Present Value of Expected Future Policy Benefits:
Balance, beginning of period$5,532 $4,169 $9,701 $2,213 $5,040 $7,253 
Beginning balance at original discount rate5,668 4,601 10,269 2,217 5,277 7,494 
Effect of changes in cash flow assumptions6 77 83 1 74 75 
Effect of actual variances from expected experience(34)(56)(90)6 (33)(27)
Adjusted beginning of period balance5,640 4,622 10,262 2,224 5,318 7,542 
Acquisition of business combination— — — 311 — 311 
Issuances669 5 674 1,003 32 1,035 
Interest accrual138 89 227 71 101 172 
Benefit payments(265)(153)(418)(135)(228)(363)
Derecognitions (lapses and withdrawals)28 — 28 1 1 2 
Foreign currency translation107 — 107 — — — 
Ending balance at original discount rate6,317 4,563 10,880 3,475 5,224 8,699 
Effect of changes in discount rate assumptions(45)(360)(405)(91)(505)(596)
Balance, end of period$6,272 $4,203 $10,475 $3,384 $4,719 $8,103 
Liability for future policy benefits$6,272 $1,895 $8,167 $3,385 $1,864 $5,249 
Less: Reinsurance recoverables(1)(1,311)(1,312)(3)(46)(49)
Net liability for future policy benefits, after reinsurance recoverable$6,271 $584 $6,855 $3,382 $1,818 $5,200 
Weighted-average liability duration of future policy benefits (years)6 years14 years8 years16 years
Weighted average interest accretion rate5.28 %4.77 %5.09 %4.61 %
Weighted average current discount rate5.36 %5.69 %5.47 %5.58 %
(1)For the six months ended June 30, 2025 and June 30, 2024, the Company recognized liability remeasurement impacts of $31 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 Consolidated Statements of Operations.
The amounts of undiscounted and discounted expected gross premiums and future benefit payments follow:
June 30, 2025June 30, 2024
UndiscountedDiscountedUndiscountedDiscounted
(Dollars in millions)
Annuities
Expected future benefit payments$10,620 $6,245 $5,531 $3,384 
Expected future gross premiums— — — — 
Life Insurance
Expected future benefit payments8,675 4,203 10,375 4,719 
Expected future gross premiums5,482 3,259 14,649 8,507 
Total
Expected future benefit payments19,295 10,448 15,906 8,103 
Expected future gross premiums5,482 3,259 14,649 8,507 
The amount of revenue and interest recognized in the Consolidated Statements of Operations follows:
Six Months Ended June 30,
2025202420252024
Gross Premiums
or Assessments		Interest
Expense
(Dollars in millions)
Annuity$687 $1,555 $118 $81 
Life Insurance206 391 41 72 
20. 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 Consolidated Statements of Financial Position and is the amount estimated for incurred but not reported (“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:
Three Months Ended
June 30,		Six Months Ended
June 30,
2025202420252024
(Dollars in millions)
Policy and contract claims, beginning$1,908 $1,854 $1,867 $1,870 
Less: Unpaid claims balance, beginning – long-duration233 203 241 213 
Gross unpaid claims balance, beginning – short-duration1,675 1,651 1,626 1,657 
Less: Reinsurance recoverables, beginning337 306 288 302 
Net unpaid claims balance, beginning – short-duration1,338 1,345 1,338 1,355 
Acquisition from business combination, net of reinsurance— 1 — 1 
Add: incurred related to:
Current accident year304 407 595 750 
Prior accident years20 (14)17 (32)
Total incurred claims324 393 612 718 
Less: paid claims related to:
Current accident year163 201 241 309 
Prior accident years145 142 355 369 
Total paid claims308 343 596 678 
Net unpaid claims balance, ending – short-duration1,354 1,396 1,354 1,396 
Add: Reinsurance recoverables, ending303 271 303 271 
Gross unpaid claims balance, ending – short-duration1,657 1,667 1,657 1,667 
Add: Unpaid claims balance, ending – long duration253 213 253 213 
Policy and contract claims, ending$1,910 $1,880 $1,910 $1,880 
The estimates for ultimate incurred claims attributable to insured events of prior years increased by $20 million and increased by $17 million for the three and six months ended June 30, 2025, respectively, and decreased by $14 million and $32 million for the three and six months ended June 30, 2024, respectively. The unfavorable development in 2025 was a reflection of higher than anticipated losses arising from personal auto, personal other, and specialty market product lines. The favorable development in 2024 was a reflection of lower than anticipated losses arising from commercial other, business owners and commercial auto lines of business.
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.