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Liability For Unpaid Claims And Claim Adjustment Expenses
 9 Months Ended
Sep. 30, 2025
Liability for Future Policy Benefits and Unpaid Claims and Claims Adjustment Expense [Abstract]  
Liability For Unpaid Claims And Claim Adjustment Expenses
17. Future Policy Benefits
The reconciliation of the balances described in the table below to the “Future policy benefits” in the Condensed Consolidated Statements of Financial Position is as follows.
September 30, 2025December 31, 2024
(Dollars in millions)
Future policy benefits:
Annuities$6,563 $5,532 
Life Insurance1,947 1,816 
Deferred profit liability:
Annuities64 81 
Life Insurance105 76 
Other contracts and VOBA liability1,666 1,665 
Total future policy benefits$10,345 $9,170 
Future Policy Benefits
The balances and changes in the liability for future policy benefits are as follows:
Nine Months Ended September 30,
20252024
AnnuitiesLife
Insurance		TotalAnnuitiesLife
Insurance		Total
(Dollars in millions)
Present Value of Expected Net Premiums:
Balance, beginning of period$— $2,353 $2,353 $— $3,145 $3,145 
Beginning balance at original discount rate— 2,507 2,507 — 3,254 3,254 
Effect of changes in cash flow assumptions (1) — 68 68 — 195 195 
Effect of actual variances from expected experience1 (56)(55)11 (325)(314)
Adjusted beginning of period balance1 2,519 2,520 11 3,124 3,135 
Acquisition from business combination— — — — — — 
Issuances796 7 803 1,287 38 1,325 
Interest accrual7 71 78 10 87 97 
Net premiums collected(807)(219)(1,026)(1,306)(244)(1,550)
Derecognitions (lapses and withdrawals)3 — 3 — 1 1 
Ending balance at original discount rate— 2,378 2,378 2 3,006 3,008 
Effect of changes in discount rate assumptions— (77)(77)— (39)(39)
Balance, end of period$— $2,301 $2,301 $2 $2,967 $2,969 
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 assumptions (1)10 72 82 — (185)(185)
Effect of actual variances from expected experience(1)(50)(51)11 (357)(346)
Adjusted beginning of period balance5,677 4,623 10,300 2,228 4,735 6,963 
Acquisition of business combination— — — 311 — 311 
Issuances983 7 990 1,300 44 1,344 
Interest accrual212 132 344 105 145 250 
Benefit payments(414)(237)(651)(199)(223)(422)
Derecognitions (lapses and withdrawals)35 — 35 3 1 4 
Foreign currency translation78 — 78 — — — 
Ending balance at original discount rate6,571 4,525 11,096 3,748 4,702 8,450 
Effect of changes in discount rate assumptions(8)(277)(285)83 (168)(85)
Balance, end of period$6,563 $4,248 $10,811 $3,831 $4,534 $8,365 
Liability for future policy benefits$6,563 $1,947 $8,510 $3,829 $1,567 $5,396 
Less: Reinsurance recoverables(2)(1,270)(1,272)(3)(1,288)(1,291)
Net liability for future policy benefits, after reinsurance recoverable$6,561 $677 $7,238 $3,826 $279 $4,105 
Weighted-average liability duration of future policy benefits (years)6 years14 years8 years15 years
Weighted average interest accretion rate5.29 %4.70 %5.12 %4.63 %
Weighted average current discount rate5.27 %5.42 %4.85 %5.05 %
(1)For the nine months ended September 30, 2025, the Company recognized liability remeasurement impacts of $53 million from the net effect of the changes in cash flow assumptions, which were included in “Policyholder benefits and claims incurred” in the Condensed Consolidated Statements of Operations.
The Company performs its annual assumptions review during the third quarter of each year. In 2025, assumption updates resulted in a $31 million increase to future policy benefit liabilities. The notable changes to assumptions in the third quarter of 2025 resulted in (i) an increase in the liability for future policy benefits related to annuity products driven by unfavorable mortality. The change in mortality resulted in an offsetting decrease to the deferred profit liability and (ii) an increase in the liability for future policy benefits for universal life products primarily driven by unfavorable mortality, partially offset by a favorable update to premium persistency.
For the nine months ended September 30, 2024, the Company recognized liability remeasurement impacts of $15 million, which were included in “Policyholder benefits and claims incurred” in the Condensed Consolidated Statements of Operations. The notable changes to cash flow assumptions in the third quarter of 2024 resulted in (i) a decrease in the liability for future policy benefits related to annuity products driven by favorable mortality, which resulted in an offsetting increase to the deferred profit liability; (ii) a decrease in the liability for future policy benefits for term life products primarily driven by favorable mortality and favorable updates to policyholder lapse behavior assumptions; and (iii) an increase in the future policy benefits liability for universal life products driven by unfavorable updates in policyholder lapse assumptions and unfavorable mortality.
The amounts of undiscounted and discounted expected gross premiums and future benefit payments follow:
September 30, 2025September 30, 2024
UndiscountedDiscountedUndiscountedDiscounted
(Dollars in millions)
Annuities
Expected future benefit payments$11,444 $6,563 $6,011 $3,831 
Expected future gross premiums— — — — 
Life Insurance
Expected future benefit payments8,585 4,248 9,051 4,534 
Expected future gross premiums5,381 3,248 5,858 3,681 
Total
Expected future benefit payments20,029 10,811 15,062 8,365 
Expected future gross premiums5,381 3,248 5,858 3,681 
The amount of revenue and interest recognized in the Condensed Consolidated Statements of Operations follows:
Nine Months Ended September 30,
2025202420252024
Gross Premiums
or Assessments		Interest
Expense
(Dollars in millions)
Annuity$823 $2,903 $204 $176 
Life Insurance305 721 81 130 
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 Condensed 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
September 30,		Nine Months Ended
September 30,
2025202420252024
(Dollars in millions)
Policy and contract claims, beginning$1,910 $1,880 $1,867 $1,870 
Less: Unpaid claims balance, beginning – long-duration253 213 241 213 
Gross unpaid claims balance, beginning – short-duration1,657 1,667 1,626 1,657 
Less: Reinsurance recoverables, beginning303 271 288 302 
Net unpaid claims balance, beginning – short-duration1,354 1,396 1,338 1,355 
Acquisition from business combination, net of reinsurance— — — 1 
Add: incurred related to:
Current accident year242 354 837 1,104 
Prior accident years18 (7)35 (39)
Total incurred claims260 347 872 1,065 
Less: paid claims related to:
Current accident year166 232 407 541 
Prior accident years129 109 484 478 
Total paid claims295 341 891 1,019 
Net unpaid claims balance, ending – short-duration1,319 1,402 1,319 1,402 
Add: Reinsurance recoverables, ending212 300 212 300 
Gross unpaid claims balance, ending – short-duration1,531 1,702 1,531 1,702 
Add: Unpaid claims balance, ending – long duration280 201 280 201 
Policy and contract claims, ending$1,811 $1,903 $1,811 $1,903 
The estimates for ultimate incurred claims attributable to insured events of prior years increased by $18 million and increased by $35 million for the three and nine months ended September 30, 2025, respectively, and decreased by $7 million and decreased by $39 million for the three and nine months ended September 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, workers’ compensation, and homeowners 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 September 30, 2025 and December 31, 2024 were $7 million and $7 million, respectively.