XML 25 R12.htm IDEA: XBRL DOCUMENT v3.25.4
Insurance Liabilities
 12 Months Ended
Dec. 31, 2025
Insurance [Abstract]  
Insurance Liabilities
3. Insurance Liabilities
Liability for Future Policy Benefits
Information regarding LFPBs for non-participating traditional and limited-payment contracts was as follows:
Years Ended December 31,
202520242023
Term and Whole Life InsuranceIncome AnnuitiesStructured Settlement and Pension Risk Transfer AnnuitiesTerm and Whole Life InsuranceIncome AnnuitiesStructured Settlement and Pension Risk Transfer AnnuitiesTerm and Whole Life InsuranceIncome AnnuitiesStructured Settlement and Pension Risk Transfer Annuities
(Dollars in millions)
Present value of expected net premiums:
Balance, beginning of year$2,758 $— $— $2,899 $— $— $2,804 $— $— 
Beginning balance at original discount rate3,110 — — 3,162 — — 3,146 — — 
Effect of model refinements3 — — 4 — — — — — 
Effect of changes in cash flow assumptions(115)— — 146 — — 206 — — 
Effect of actual variances from expected experience(46)— — 8 — — (17)— — 
Adjusted beginning of year balance2,952 — — 3,320 — — 3,335 — — 
Issuances14 — — 67 — — 93 — — 
Interest accrual102 — — 110 — — 108 — — 
Net premiums collected(363)— — (387)— — (374)— — 
Ending balance at original discount rate2,705 — — 3,110 — — 3,162 — — 
Effect of changes in discount rate assumptions(243)— — (352)— — (263)— — 
Balance, end of year$2,462 $— $— $2,758 $— $— $2,899 $— $— 
Present value of expected future policy benefits:
Balance, beginning of year$5,245 $3,728 $6,118 $5,385 $3,719 $6,697 $5,172 $3,469 $6,793 
Beginning balance at original discount rate5,908 4,121 6,876 5,905 3,993 7,085 5,816 3,848 7,410 
Effect of model refinements2 — 4 10 — — — — — 
Effect of changes in cash flow assumptions(128)18 22 235 (23)82 296 — — 
Effect of actual variances from expected experience(73)(37)(29)(5)— (10)(15)(21)(47)
Adjusted beginning of year balance5,709 4,102 6,873 6,145 3,970 7,157 6,097 3,827 7,363 
Issuances14 383 — 72 400 — 99 369 — 
Interest accrual205 156 293 213 148 305 211 139 314 
Benefit payments(482)(410)(531)(522)(397)(586)(502)(342)(592)
Ending balance at original discount rate5,446 4,231 6,635 5,908 4,121 6,876 5,905 3,993 7,085 
Effect of changes in discount rate assumptions(462)(284)(626)(663)(393)(758)(520)(274)(388)
Balance, end of year$4,984 $3,947 $6,009 $5,245 $3,728 $6,118 $5,385 $3,719 $6,697 
Net liability for future policy benefits, end of year$2,522 $3,947 $6,009 $2,487 $3,728 $6,118 $2,486 $3,719 $6,697 
Less: Reinsurance recoverable, end of year15 32 56 19 31 59 24 30 65 
Net liability for future policy benefits, after reinsurance recoverable$2,507 $3,915 $5,953 $2,468 $3,697 $6,059 $2,462 $3,689 $6,632 
Weighted-average duration of liability
7.2 years7.7 years11.5 years7.6 years7.9 years11.6 years8.8 years8.2 years11.6 years
Weighted-average interest accretion rate3.90 %4.14 %4.47 %3.92 %4.04 %4.46 %3.91 %3.99 %4.46 %
Current discount rate
5.01 %5.14 %5.47 %5.42 %5.48 %5.64 %4.94 %4.95 %5.03 %
Gross premiums or assessments recognized during period
$519 $492 $— $563 $485 $— $595 $472 $— 
Expected future gross premiums, undiscounted$4,959 $— $— $5,714 $— $— $5,999 $— $— 
Expected future gross premiums, discounted$3,738 $— $— $4,244 $— $— $4,535 $— $— 
Expected future benefit payments, undiscounted$7,284 $5,896 $12,820 $8,031 $5,759 $13,336 $8,148 $5,616 $13,767 
Expected future benefit payments, discounted$5,446 $4,231 $6,635 $5,908 $4,121 $6,876 $5,905 $3,993 $7,085 
The measurement of LFPBs can be significantly impacted by changes in assumptions for policyholder behavior. As part of the 2025 and 2024 annual actuarial reviews (“AAR”), the Company updated assumptions regarding mortality and lapses for term participating and non-participating whole life insurance. The impact from changes in assumptions is presented in effect of changes in cash flow assumptions in the table above.
Information regarding the additional insurance liabilities for universal life-type contracts with secondary guarantees was as follows:
Years Ended December 31,
202520242023
(Dollars in millions)
Balance, beginning of year$8,986 $7,607 $6,935 
Beginning balance before the effect of unrealized gains and losses9,277 7,784 7,175 
Effect of changes in cash flow assumptions480 895 52 
Effect of actual variances from expected experience133 167 145 
Adjusted beginning of year balance9,890 8,846 7,372 
Interest accrual469 406 357 
Net assessments collected480 446 414 
Benefit payments(541)(421)(359)
Ending balance before the effect of unrealized gains and losses10,298 9,277 7,784 
Effect of unrealized gains and losses(221)(291)(177)
Balance, end of year10,077 8,986 7,607 
Less: Reinsurance recoverable, end of year1,801 1,535 1,438 
Net additional liability, after reinsurance recoverable$8,276 $7,451 $6,169 
Weighted-average duration of liability6.6 years6.6 years6.7 years
Weighted-average interest accretion rate4.95 %4.94 %4.92 %
Gross assessments recognized during period$1,076 $1,083 $1,064 
The measurement of liabilities for secondary guarantees can be significantly impacted by changes in assumptions for policyholder behavior, as well as the expected general account rate of return, which is driven by the Company’s assumption for long-term treasury yields. The Company’s practice of projecting treasury yields uses a mean reversion approach that assumes that long-term interest rates are less influenced by short-term fluctuations and are only changed when sustained interim deviations are expected. As part of the 2025 and 2024 AARs, the Company updated assumptions regarding policyholder behavior, including mortality, premium persistency, lapses and withdrawals. In 2025, the Company also increased the long-term general account earned rate, driven by an increase in the mean reversion rate, from 4.00% to 4.50%. The impact from changes in assumptions, excluding the effects on the ULSG liability for profits followed by losses, is presented in effect of changes in cash flow assumptions in the table above.
A reconciliation of the net LFPBs for non-participating traditional and limited-payment contracts and the additional insurance liabilities for universal life-type contracts with secondary guarantees reported in the preceding rollforward tables to LFPBs on the consolidated balance sheets was as follows at:
December 31,
20252024
(In millions)
Liabilities reported in the preceding rollforward tables$22,555 $21,319 
Long-term care insurance (1)5,203 5,190 
ULSG liabilities, including liability for profits followed by losses (2)
57 875 
Participating whole life insurance (3)
3,054 2,969 
Deferred profit liabilities452 428 
Other361 304 
Total liability for future policy benefits$31,682 $31,085 
_______________
(1)Includes liabilities related to fully reinsured individual long-term care insurance. See Notes 2 and 7.
(2)The effect of changes in assumptions for ULSG liabilities, including the liability for profits followed by losses was ($1.2) billion for the year ended December 31, 2025.
(3)Participating whole life insurance uses an interest assumption based on the non-forfeiture interest rate, ranging from 3.5% to 4.0%, and mortality rates guaranteed in calculating the cash surrender values described in such contracts, and also includes a liability for terminal dividends. Participating whole life insurance represented 3% of the Company’s life insurance in-force at both December 31, 2025 and 2024, and 38% and 39% of gross traditional life insurance premiums for the years ended December 31, 2025 and 2024, respectively.
Policyholder Account Balances
Information regarding policyholder account balances was as follows:
Universal Life InsuranceVariable Annuities (1)Index-linked AnnuitiesFixed Rate AnnuitiesULSGCompany-Owned Life Insurance (1)
(Dollars in millions)
Year Ended December 31, 2025
Balance, beginning of year$2,028 $3,667 $48,605 $14,665 $4,779 $1,166 
Premiums and deposits248 50 8,396 1,225 604 — 
Surrenders and withdrawals(62)(554)(7,861)(2,835)(29)— 
Benefit payments(47)(89)(365)(365)(87)(10)
Net transfers from (to) separate account18 107 — — — (524)
Interest credited89 101 756 562 154 21 
Policy charges(199)(18)(39)— (960)(7)
Changes related to embedded derivatives2 — 3,102 — — — 
Balance, end of year$2,077 $3,264 $52,594 $13,252 $4,461 $646 
Weighted-average crediting rate (2)4.35 %2.88 %1.93 %3.97 %3.33 %2.78 %
Year Ended December 31, 2024
Balance, beginning of year$1,980 $4,111 $41,627 $14,672 $5,052 $653 
Premiums and deposits229 73 8,228 1,127 645 — 
Surrenders and withdrawals(56)(616)(5,532)(1,356)(23)— 
Benefit payments(46)(93)(324)(345)(70)(9)
Net transfers from (to) separate account32 102 — — — 500 
Interest credited82 109 673 567 163 29 
Policy charges(193)(19)(23)— (988)(7)
Changes related to embedded derivatives— — 3,956 — — — 
Balance, end of year$2,028 $3,667 $48,605 $14,665 $4,779 $1,166 
Weighted-average crediting rate (2)4.10 %2.81 %1.79 %3.84 %3.32 %3.63 %
Year Ended December 31, 2023
Balance, beginning of year$2,100 $4,664 $33,897 $14,274 $5,307 $641 
Premiums and deposits210 75 7,183 2,694 660 — 
Surrenders and withdrawals(129)(647)(3,732)(2,405)(23)— 
Benefit payments(59)(101)(240)(377)(85)(8)
Net transfers from (to) separate account18 14 — — — 1 
Interest credited40 129 445 486 208 28 
Policy charges(200)(23)(11)— (1,015)(9)
Changes related to embedded derivatives— — 4,085 — — — 
Balance, end of year$1,980 $4,111 $41,627 $14,672 $5,052 $653 
Weighted-average crediting rate (2)
2.03 %2.91 %1.47 %3.31 %4.02 %4.33 %
_______________
(1)Includes liabilities related to separate account products where the contract holder elected a general account investment option.
(2)Excludes the effects of embedded derivatives related to index-linked crediting rates.
A reconciliation of policyholder account balances reported in the preceding rollforward table to the liability for policyholder account balances on the consolidated balance sheets was as follows at:
December 31,
20252024
(In millions)
Policyholder account balances reported in the preceding rollforward table$76,294 $74,910 
Funding agreements classified as investment contracts
9,502 11,002 
Institutional group annuities
569 370 
Other investment contract liabilities
809 880 
Total policyholder account balances$87,174 $87,162 
The balance of account values by range of guaranteed minimum crediting rates and the related range of difference, in basis points, between rates being credited to policyholders and the respective guaranteed minimums was as follows at:
Range of Guaranteed Minimum Crediting RateAt Guaranteed Minimum1 to 50 Basis Points Above51 to 150 Basis Points AboveGreater than 150 Basis Points AboveTotal
(In millions)
December 31, 2025
Annuities (1):
Less than 2.00%
$384 $127 $188 $8,133 $8,832 
2.00% to 3.99%
6,155 497 518 327 7,497 
Greater than 3.99%
740 — — — 740 
Total$7,279 $624 $706 $8,460 $17,069 
Life insurance (2) (3):
Less than 2.00%
$— $— $— $413 $413 
2.00% to 3.99%
— 476 43 112 631 
Greater than 3.99%
969 — — — 969 
Total
$969 $476 $43 $525 $2,013 
ULSG (3):
Less than 2.00%
$— $— $— $— $— 
2.00% to 3.99%
965 1,279 1,496 222 3,962 
Greater than 3.99%
484 — — — 484 
Total
$1,449 $1,279 $1,496 $222 $4,446 
December 31, 2024
Annuities (1):
Less than 2.00%
$516 $112 $230 $8,749 $9,607 
2.00% to 3.99%
6,633 439 416 334 7,822 
Greater than 3.99%
781 — — — 781 
Total$7,930 $551 $646 $9,083 $18,210 
Life insurance (2) (3):
Less than 2.00%
$— $— $— $308 $308 
2.00% to 3.99%
— 471 47 128 646 
Greater than 3.99%
1,020 — — — 1,020 
Total
$1,020 $471 $47 $436 $1,974 
ULSG (3):
Less than 2.00%
$— $— $— $— $— 
2.00% to 3.99%
1,052 1,386 1,602 238 4,278 
Greater than 3.99%
484 — — — 484 
Total
$1,536 $1,386 $1,602 $238 $4,762 
_______________
(1)Includes policyholder account balances for fixed rate annuities and the fixed account portion of variable annuities.
(2)Includes policyholder account balances for retained asset accounts, universal life policies and the fixed account portion of universal variable life insurance policies.
(3)Amounts are gross of policy loans.
See Note 5 for information regarding net amount at risk and cash surrender values.
Obligations Under Funding Agreements
Institutional Spread Margin Business
Brighthouse Life Insurance Company has issued unsecured fixed and floating rate funding agreements to certain special purpose entities that have issued either debt securities or commercial paper for which payment of interest and principal is secured by such funding agreements. The Company had obligations outstanding under these funding agreements of $4.3 billion and $5.5 billion at December 31, 2025 and 2024, respectively.
Brighthouse Life Insurance Company established a secured funding agreement-backed repurchase agreement program in January 2024. Brighthouse Life Insurance Company may enter into repurchase agreements with bank counterparties and the proceeds of the repurchase agreements are then used by a special purpose entity to purchase funding agreements from Brighthouse Life Insurance Company. The Company had obligations under this program of $500 million at both December 31, 2025 and 2024.
Brighthouse Life Insurance Company has a secured funding agreement program with the Federal Home Loan Bank (“FHLB”) of Atlanta and the Federal Agricultural Mortgage Corporation and its affiliate Farmer Mac Mortgage Securities Corporation (“Farmer Mac”). Funding agreements are issued to FHLB and Farmer Mac in exchange for cash, for which these programs have been granted liens on certain assets, some of which are in their custody to collateralize the Company’s obligations under the funding agreements. Upon any event of default by the Company, the program recovery on the collateral is limited to the amount of the Company’s liabilities to FHLB and Farmer Mac, respectively. The Company had obligations outstanding under these programs of $4.7 billion and $5.0 billion at December 31, 2025 and 2024, respectively.
See Note 8 for information on invested assets pledged as collateral in connection with funding agreements.