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Future Policy Benefit Reserves
 12 Months Ended
Dec. 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 LFPB which is reflected as Insurance reserves: Future policy benefits on the 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.
Annually in the third quarter, actuarial analysis is performed on policyholder morbidity, persistency, premium rate actions and expense experience. This analysis, combined with judgment, informs the setting of updated cash flow assumptions used to estimate the LFPB. Actuarial analysis includes predictive modeling, actual to expected experience comparisons and trend analysis. Applicable industry research is also considered.
The cash flow assumption updates completed in the third quarter of 2025 resulted in a $7 million pretax increase in the LFPB. Included in the assumption updates were unfavorable incidence, claim closure and cost of care inflation impacts offset by favorable premium rate actions.
The cash flow assumption updates completed in the third quarter of 2024 resulted in a $15 million pretax increase in the LFPB. Included in the assumption updates was a favorable impact from outperformance on premium rate assumptions and an unfavorable impact from higher cost of care inflation.
The following table summarizes balances and changes in the LFPB.
(In millions)
202520242023
Present value of future net premiums
Balance, January 1$3,425 $3,710 $3,991 
     Effect of changes in discount rate(7)(125)(74)
Balance, January 1, at original locked in discount rate3,418 3,585 3,917 
     Effect of changes in cash flow assumptions (1)
114 111 28 
     Effect of actual variances from expected experience (1)
(10)(41)(126)
Adjusted balance, January 13,522 3,655 3,819 
Interest accrual176 183 202 
     Net premiums: earned during period(406)(420)(436)
Balance, end of period at original locked in discount rate3,292 3,418 3,585 
     Effect of changes in discount rate71 7 125 
Balance, December 31$3,363 $3,425 $3,710 
Present value of future benefits & expenses
Balance, January 1$16,583 $17,669 $17,471 
     Effect of changes in discount rate440 (578)(125)
Balance, January 1, at original locked in discount rate17,023 17,091 17,346 
     Effect of changes in cash flow assumptions (1)
121 126 36 
     Effect of actual variances from expected experience (1)
87 69 (46)
Adjusted balance, January 117,231 17,286 17,336 
Interest accrual918 924 962 
     Benefit & expense payments(1,165)(1,187)(1,207)
Balance, end of period at original locked in discount rate16,984 17,023 17,091 
     Effect of changes in discount rate(173)(440)578 
Balance, December 31$16,811 $16,583 $17,669 
Net LFPB$13,448 $13,158 $13,959 
(1) As of December 31, 2025, 2024 and 2023 the re-measurement gain (loss) of $(104) million, $(125) million and $(88) million presented parenthetically on the 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 expense associated with the Company’s long-term care business recognized on the Consolidated Statement of Operations.
Years ended December 31
(In millions)
202520242023
Earned premiums$423 $437 $451 
Interest accretion742 741 760 
The following table presents undiscounted expected future benefit and expense payments, and undiscounted expected future gross premiums.
As of December 31
(In millions)
20252024
Expected future benefit and expense payments$31,323 $31,712 
Expected future gross premiums4,930 5,183 
Discounted expected future gross premiums at the upper-medium grade fixed income instrument yield discount rate were $3,507 million and $3,573 million as of December 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 December 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 December 31
20252024
Original locked in discount rate5.16 %5.20 %
Upper-medium grade fixed income instrument discount rate5.32 5.51 
For the years ended December 31, 2025 and 2024, immediate charges to net income resulting from adverse development in certain cohorts where the NPR exceeded 100% were $135 million and $159 million. For the years ended December 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 $58 million and $29 million.