Other Insurance Liabilities and Separate Accounts

9 Months Ended

Sep. 30, 2025

Other Insurance Liabilities and Separate Accounts

Future Policy Benefits

The following tables show the components of the change in the liability for future policy benefits, which is included in other insurance liabilities and other long-term insurance liabilities on the unaudited condensed consolidated balance sheets, during the nine months ended September 30, 2025 and 2024:


	Nine Months Ended September 30, 2025
In millions	Large Case Pensions		Long-Term Care
Present value of expected net premiums (1)
Liability for future policy benefits, beginning of the period - current discount rate			$	275

Beginning liability for future policy benefits at original (locked-in) discount rate			$	280
Effect of changes in cash flow assumptions			—
Effect of actual variances from expected experience			3
Adjusted beginning liability for future policy benefits - original (locked-in) discount rate			283

Interest accrual (using locked-in discount rate)			10
Net premiums (actual)			(28)

Ending liability for future policy benefits at original (locked-in) discount rate			265
Effect of changes in discount rate assumptions			2
Liability for future policy benefits, end of the period - current discount rate			$	267

Present value of expected future policy benefits
Liability for future policy benefits, beginning of the period - current discount rate	$	1,917	$	1,552

Beginning liability for future policy benefits at original (locked-in) discount rate	$	2,090	$	1,647
Effect of changes in cash flow assumptions	—		—
Effect of actual variances from expected experience	(4)		2
Adjusted beginning liability for future policy benefits - original (locked-in) discount rate	2,086		1,649
Issuances	10		—
Interest accrual (using locked-in discount rate)	64		62
Benefit payments (actual)	(183)		(58)


Ending liability for future policy benefits at original (locked-in) discount rate	1,977		1,653
Effect of changes in discount rate assumptions	(115)		(46)
Liability for future policy benefits, end of the period - current discount rate	$	1,862	$	1,607

Net liability for future policy benefits	$	1,862	$	1,340
Less: Reinsurance recoverable	—		—
Net liability for future policy benefits, net of reinsurance recoverable	$	1,862	$	1,340

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(1)The present value of expected net premiums is equivalent to the present value of expected gross premiums for the long-term care insurance contracts as net premiums are set equal to gross premiums.


	Nine Months Ended September 30, 2024
In millions	Large Case Pensions		Long-Term Care
Present value of expected net premiums (1)
Liability for future policy benefits, beginning of the period - current discount rate			$	293

Beginning liability for future policy benefits at original (locked-in) discount rate			$	288
Effect of changes in cash flow assumptions			—
Effect of actual variances from expected experience			12
Adjusted beginning liability for future policy benefits - original (locked-in) discount rate			300

Interest accrual (using locked-in discount rate)			11
Net premiums (actual)			(29)

Ending liability for future policy benefits at original (locked-in) discount rate			282
Effect of changes in discount rate assumptions			6
Liability for future policy benefits, end of the period - current discount rate			$	288

Present value of expected future policy benefits
Liability for future policy benefits, beginning of the period - current discount rate	$	2,139	$	1,640

Beginning liability for future policy benefits at original (locked-in) discount rate	$	2,251	$	1,632
Effect of changes in cash flow assumptions	—		—
Effect of actual variances from expected experience	(20)		5
Adjusted beginning liability for future policy benefits - original (locked-in) discount rate	2,231		1,637
Issuances	26		—
Interest accrual (using locked-in discount rate)	69		61
Benefit payments (actual)	(192)		(55)


Ending liability for future policy benefits at original (locked-in) discount rate	2,134		1,643
Effect of changes in discount rate assumptions	(90)		12
Liability for future policy benefits, end of the period - current discount rate	$	2,044	$	1,655

Net liability for future policy benefits	$	2,044	$	1,367
Less: Reinsurance recoverable	—		—
Net liability for future policy benefits, net of reinsurance recoverable	$	2,044	$	1,367

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(1)The present value of expected net premiums is equivalent to the present value of expected gross premiums for the long-term care insurance contracts as net premiums are set equal to gross premiums.

The Company did not have any material differences between the actual experience and expected experience for the significant assumptions used in the computation of the liability for future policy benefits.

The amount of undiscounted expected gross premiums and expected future benefit payments for long-duration insurance liabilities as of September 30, 2025 and 2024 were as follows:


In millions	September 30, 2025		September 30, 2024
Large case pensions
Expected future benefit payments	$	2,854	$	3,091
Expected gross premiums	—		—

Long-term care
Expected future benefit payments	$	3,143	$	3,198
Expected gross premiums	375		402

The weighted-average interest rate used in the measurement of the long-duration insurance liabilities as of September 30, 2025 and 2024 were as follows:


	September 30, 2025	September 30, 2024
Large case pensions
Interest accretion rate	4.21%	4.20%
Current discount rate	5.07%	4.82%

Long-term care
Interest accretion rate	5.11%	5.11%
Current discount rate	5.42%	5.07%

The weighted-average durations (in years) of the long-duration insurance liabilities as of September 30, 2025 and 2024 were as follows:


	September 30, 2025	September 30, 2024
Large case pensions	7.2	7.3
Long-term care	11.3	11.8

Separate Accounts

The following table shows the fair value of assets, by major investment category, supporting Separate Accounts as of September 30, 2025 and December 31, 2024:


In millions	September 30, 2025		December 31, 2024

Cash and cash equivalents	$	160	$	165
Debt securities:
U.S. government securities	36		186
States, municipalities and political subdivisions	11		14
U.S. corporate securities	290		524


Foreign securities	42		51
Residential mortgage-backed securities	7		71
Commercial mortgage-backed securities	3		3
Other asset-backed securities	5		7
Total debt securities	394		856

Common/collective trusts	1,337		2,478

Total (1)	$	1,891	$	3,499

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(1)Excludes $43 million of other receivables and $188 million of other payables at September 30, 2025 and December 31, 2024, respectively.

The following table shows the components of the change in Separate Accounts liabilities during the nine months ended September 30, 2025 and 2024:


	Nine Months Ended September 30,
In millions	2025		2024

Separate Accounts liability, beginning of the period	$	3,311	$	3,250
Premiums and deposits	668		661

Surrenders and withdrawals	(1,325)		(203)
Benefit payments	(714)		(706)
Investment earnings (losses)	(6)		327
Net transfers from general account	7		8
Other	(7)		(3)
Separate Accounts liability, end of the period	$	1,934	$	3,334

Cash surrender value, end of the period	$	882	$	2,209

The Company did not recognize any gains or losses on assets transferred to Separate Accounts during the nine months ended September 30, 2025 and 2024.