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Future Policy Benefits (Tables)

3 Months Ended

Mar. 31, 2025

Liability for Future Policy Benefit, Activity

It is the Company’s policy to complete its annual assumption review during the third quarter of each year. However, the Company reviews actual and anticipated experience compared to the assumptions used to compute the liability for future policy benefits on a quarterly basis and will update those assumptions during the quarter that indicates an assumption update is necessary.

Traditional Business

The following tables provide the balances of and changes in the Company’s liability for future policy benefits for long-duration reinsurance contracts for its Traditional business, which primarily consists of individual life, group life and critical illness reinsurance for the three months ended March 31, 2025 and 2024 (dollars in millions):


For the three months ended March 31, 2025:	U.S. and Latin America – Traditional		Canada – Traditional		Europe, Middle East and Africa – Traditional		Asia Pacific – Traditional
Present Value of Expected Net Premiums
Beginning of year balance at original discount rate	$	77,881	$	20,928	$	15,911	$	44,801
Effect of changes in cash flow assumptions	—		—		—		—
Effect of actual variances from expected experience	(300)		23		199		(195)
Adjusted balance, beginning of year	77,581		20,951		16,110		44,606
Issuances (1)	3,467		100		438		1,327
Interest accrual (2)	887		179		140		304
Net premiums collected (3)	(3,049)		(231)		(454)		(594)
Derecognition (4)	—		—		—		—
Foreign currency translation	1		(6)		517		135
Ending balance at original discount rate	78,887		20,993		16,751		45,778
Effect of changes in discount rate assumptions	(8,126)		(3,839)		(3,099)		(12,641)
Balance, end of period	$	70,761	$	17,154	$	13,652	$	33,137

Present Value of Expected Future Policy Benefits
Beginning of year balance at original discount rate	$	90,711	$	24,309	$	17,365	$	49,712
Effect of changes in cash flow assumptions	—		—		—		—
Effect of actual variances from expected experience	(349)		23		190		(211)
Adjusted balance, beginning of year	90,362		24,332		17,555		49,501
Issuances (1)	3,467		100		438		1,327
Interest accrual (2)	1,061		231		150		347
Benefit payments (5)	(1,332)		(261)		(401)		(524)
Derecognition (4)	—		—		—		—
Foreign currency translation	2		(5)		568		152
Ending balance at original discount rate	93,560		24,397		18,310		50,803
Effect of changes in discount rate assumptions	(10,348)		(3,093)		(3,481)		(14,999)
Balance, end of period	$	83,212	$	21,304	$	14,829	$	35,804

Liability for future policy benefits	$	12,451	$	4,150	$	1,177	$	2,667
Less: reinsurance recoverable	(800)		(259)		(19)		(75)
Net liability for future policy benefits	$	11,651	$	3,891	$	1,158	$	2,592


Weighted average duration of the liability (in years)	11		14		8		15
Weighted average interest accretion rate	4.6	%	3.7	%	3.4	%	2.8	%
Weighted average current discount rate	5.6	%	4.7	%	5.8	%	4.7	%

(1)Issuances: The present value, using the original discount rate, of the expected net premiums or the expected future policy benefits related to new reinsurance contracts that became effective during the current period and new policies assumed on existing contracts.

(2)Interest accrual: The interest earned on the beginning present value of either the expected net premiums or the expected future policy benefits using the original interest rate.

(3)Net premiums collected: The portion of gross premiums collected from the ceding company that is used to fund expected benefit payments.

(4)Derecognition: Includes the effects of treaty recaptures and treaty amendments that resulted in the termination of an existing treaty and the issuance of a new treaty under the internal replacement model.

(5)Benefit payments: The release of the present value, using the original discount rate, of the expected future policy benefits due to death, lapse/withdrawal and other benefit payments based on current assumptions.


For the three months ended March 31, 2024:	U.S. and Latin America – Traditional		Canada – Traditional		Europe, Middle East and Africa – Traditional		Asia Pacific – Traditional
Present Value of Expected Net Premiums
Beginning of year balance at original discount rate	$	76,943	$	22,689	$	15,328	$	42,741
Effect of changes in cash flow assumptions	—		—		—		—
Effect of actual variances from expected experience	(347)		52		81		(103)
Adjusted balance, beginning of year	76,596		22,741		15,409		42,638
Issuances (1)	884		124		294		1,131
Interest accrual (2)	872		188		127		272
Net premiums collected (3)	(1,271)		(246)		(354)		(533)
Derecognition (4)	(67)		—		—		—
Foreign currency translation	—		(496)		(183)		(1,123)
Ending balance at original discount rate	77,014		22,311		15,293		42,385
Effect of changes in discount rate assumptions	(6,474)		(4,815)		(2,668)		(12,184)
Balance, end of period	$	70,540	$	17,496	$	12,625	$	30,201

Present Value of Expected Future Policy Benefits
Beginning of year balance at original discount rate	$	89,036	$	26,275	$	16,756	$	47,370
Effect of changes in cash flow assumptions	—		—		—		—
Effect of actual variances from expected experience	(378)		49		79		(104)
Adjusted balance, beginning of year	88,658		26,324		16,835		47,266
Issuances (1)	884		124		296		1,131
Interest accrual (2)	1,016		242		137		312
Benefit payments (5)	(1,348)		(263)		(372)		(485)
Derecognition (4)	(74)		—		—		—
Foreign currency translation	(1)		(574)		(202)		(1,194)
Ending balance at original discount rate	89,135		25,853		16,694		47,030
Effect of changes in discount rate assumptions	(8,048)		(4,183)		(2,920)		(14,206)
Balance, end of period	$	81,087	$	21,670	$	13,774	$	32,824

Liability for future policy benefits	$	10,547	$	4,174	$	1,149	$	2,623
Less: reinsurance recoverable	(753)		(283)		(32)		(111)
Net liability for future policy benefits	$	9,794	$	3,891	$	1,117	$	2,512


Weighted average duration of the liability (in years)	12		15		8		15
Weighted average interest accretion rate	4.6	%	3.6	%	3.3	%	2.6	%
Weighted average current discount rate	5.3	%	5.0	%	5.5	%	4.6	%

(2)Interest accrual: The interest earned on the beginning present value of either the expected net premiums or the expected future policy benefits using the original interest rate.

(3)Net premiums collected: The portion of gross premiums collected from the ceding company that is used to fund expected benefit payments.

The Company’s Traditional business actual-to-expected variances and the effects of changes in cash flow and discount rate assumptions for the three months ended March 31, 2025 and 2024 are summarized in the tables below:

For the three months ended March 31, 2025:

Segment

Liability for future policy benefits at original discount rate

Changes in cash flow assumptions

Actual-to-expected variance

Impact of updating discount rate recognized in OCI

U.S. and Latin America – Traditional

$14.7 billion

None

$(49) million

$70 million

Canada – Traditional

$3.4 billion

None

$—

$27 million

Europe, Middle East and Africa – Traditional

$1.6 billion

None

$(9) million

$(48) million

Asia Pacific – Traditional

$5.0 billion

None

$(16) million

$(50) million

For the three months ended March 31, 2024:

Segment

Liability for future policy benefits at original discount rate

Change in cash flow assumptions

Actual-to-expected variance

Impact of updating discount rate recognized in OCI

U.S. and Latin America – Traditional

$12.1 billion

None

$(31) million

$(428) million

Canada – Traditional

$3.5 billion

None

$(3) million

$(239) million

Europe, Middle East and Africa – Traditional

$1.4 billion

None

$(2) million

$(33) million

Asia Pacific – Traditional

$4.7 billion

None

$(1) million

$(57) million

Financial Solutions Business

The following tables provide the balances of and changes in the Company’s liability for future policy benefits, including the deferred profit liability related to the longevity business, for its Financial Solutions business, which primarily consists of longevity reinsurance, asset-intensive products, primarily annuities and financial reinsurance for the three months ended March 31, 2025 and 2024 (dollars in millions):


For the three months ended March 31, 2025:	U.S. and Latin America – Financial Solutions		Canada – Financial Solutions		Europe, Middle East and Africa – Financial Solutions		Asia Pacific – Financial Solutions
Present Value of Expected Net Premiums
Beginning of year balance at original discount rate	$	1,346	$	3,614	$	71,360	$	2,758
Effect of changes in cash flow assumptions	—		—		—		—
Effect of actual variances from expected experience	—		(7)		(4)		3
Adjusted balance, beginning of year	1,346		3,607		71,356		2,761
Issuances (1)	2,113		—		1,347		1,731
Interest accrual (2)	10		33		622		11
Net premiums collected (3)	(2,178)		(92)		(1,354)		(2,085)
Derecognition (4)	—		—		(257)		—
Foreign currency translation	—		(2)		2,485		146
Ending balance at original discount rate	1,291		3,546		74,199		2,564
Effect of changes in discount rate assumptions	(231)		(149)		(10,155)		(394)
Balance, end of period	$	1,060	$	3,397	$	64,044	$	2,170

Present Value of Expected Future Policy Benefits
Beginning of year balance at original discount rate	$	9,489	$	7,934	$	78,290	$	14,626
Effect of changes in cash flow assumptions	—		—		—		—
Effect of actual variances from expected experience	(1)		(7)		(7)		—
Adjusted balance, beginning of year	9,488		7,927		78,283		14,626
Issuances (1)	2,113		—		1,347		1,731
Interest accrual (2)	133		86		684		70
Benefit payments (5)	(259)		(110)		(1,472)		(150)
Derecognition (4)	—		—		(257)		—
Foreign currency translation	—		(2)		2,712		638
Ending balance at original discount rate	11,475		7,901		81,297		16,915
Effect of changes in discount rate assumptions	(535)		92		(11,177)		(2,345)
Balance, end of period	$	10,940	$	7,993	$	70,120	$	14,570

Cumulative amount of fair value hedging adjustments	$	6	$	—	$	—	$	—

Liability for future policy benefits	$	9,886	$	4,596	$	6,076	$	12,400
Less: reinsurance recoverable	(1,370)		—		—		—
Net liability for future policy benefits	$	8,516	$	4,596	$	6,076	$	12,400


Weighted average duration of the liability (in years)	9		13		9		15
Weighted average interest accretion rate	4.1	%	4.1	%	3.5	%	1.7	%
Weighted average current discount rate	5.5	%	4.6	%	5.4	%	3.3	%

(2)Interest accrual: The interest earned on the beginning present value of either the expected net premiums or the expected future policy benefits using the original interest rate.

(3)Net premiums collected: The portion of gross premiums collected from the ceding company that is used to fund expected benefit payments.


For the three months ended March 31, 2024:	U.S. and Latin America – Financial Solutions		Canada – Financial Solutions		Europe, Middle East and Africa – Financial Solutions		Asia Pacific – Financial Solutions
Present Value of Expected Net Premiums
Beginning of year balance at original discount rate	$	1,455	$	3,184	$	54,832	$	2,057
Effect of changes in cash flow assumptions	—		—		—		—
Effect of actual variances from expected experience	—		(7)		338		1
Adjusted balance, beginning of year	1,455		3,177		55,170		2,058
Issuances (1)	1,893		—		4,963		4,760
Interest accrual (2)	11		25		418		7
Net premiums collected (3)	(1,928)		(79)		(1,388)		(4,912)
Derecognition (4)	—		—		—		—
Foreign currency translation	—		(69)		(702)		(143)
Ending balance at original discount rate	1,431		3,054		58,461		1,770
Effect of changes in discount rate assumptions	(240)		(342)		(7,802)		(121)
Balance, end of period	$	1,191	$	2,712	$	50,659	$	1,649

Present Value of Expected Future Policy Benefits
Beginning of year balance at original discount rate	$	6,843	$	3,210	$	60,938	$	8,019
Effect of changes in cash flow assumptions	—		—		—		—
Effect of actual variances from expected experience	2		(7)		340		1
Adjusted balance, beginning of year	6,845		3,203		61,278		8,020
Issuances (1)	2,021		—		4,963		4,909
Interest accrual (2)	79		25		471		24
Benefit payments (5)	(165)		(80)		(1,125)		(77)
Derecognition (4)	—		—		—		—
Foreign currency translation	—		(69)		(764)		(581)
Ending balance at original discount rate	8,780		3,079		64,823		12,295
Effect of changes in discount rate assumptions	(484)		(341)		(8,609)		(796)
Balance, end of period	$	8,296	$	2,738	$	56,214	$	11,499

Liability for future policy benefits	$	7,105	$	26	$	5,555	$	9,850
Less: reinsurance recoverable	(878)		—		—		—
Net liability for future policy benefits	$	6,227	$	26	$	5,555	$	9,850


Weighted average duration of the liability (in years)	8		7		9		15
Weighted average interest accretion rate	3.6	%	3.2	%	3.0	%	1.2	%
Weighted average current discount rate	5.3	%	4.9	%	4.9	%	2.2	%

(2)Interest accrual: The interest earned on the beginning present value of either the expected net premiums or the expected future policy benefits using the original interest rate.

(3)Net premiums collected: The portion of gross premiums collected from the ceding company that is used to fund expected benefit payments.

The Company’s Financial Solutions business actual-to-expected variances (including the effects of model updates) and the effects of changes in cash flow and discount rate assumptions for the three months ended March 31, 2025 and 2024 are summarized in the tables below:

For the three months ended March 31, 2025:

Segment

Liability for future policy benefits at original discount rate

Changes in cash flow assumptions

Actual-to-expected variance

Impact of updating discount rate recognized in OCI

U.S. and Latin America – Financial Solutions

$10.2 billion

None

$(1) million

$93 million

Canada – Financial Solutions

$4.4 billion

None

$—

$49 million

Europe, Middle East and Africa – Financial Solutions

$7.1 billion

None

$(3) million

$(127) million

Asia Pacific – Financial Solutions

$14.4 billion

None

$(3) million

$(365) million

For the three months ended March 31, 2024:

Segment

Liability for future policy benefits at original discount rate

Changes in cash flow assumptions

Actual-to-expected variance

Impact of updating discount rate recognized in OCI

U.S. and Latin America – Financial Solutions

$7.4 billion

None

$2 million

$(84) million

Canada – Financial Solutions

$25 million

None

$—

$(2) million

Europe, Middle East and Africa – Financial Solutions

$6.3 billion

None

$2 million

$(154) million

Asia Pacific – Financial Solutions

$10.5 billion

None

$—

$97 million

Future Policy Benefits Reconciliation To Balance Sheet

Reconciliation and Other Disclosures

The reconciliation of the rollforward of the liability for future policy benefits to the condensed consolidated balance sheets as of March 31, 2025 and 2024 is as follows (dollars in millions):


	March 31,
	2025		2024
Liability for future policy benefits included in the rollforwards:
Traditional:
U.S. and Latin America	$	12,451	$	10,547
Canada	4,150		4,174
Europe, Middle East and Africa	1,177		1,149
Asia Pacific	2,667		2,623
Financial Solutions:
U.S. and Latin America	9,886		7,105
Canada	4,596		26
Europe, Middle East and Africa	6,076		5,555
Asia Pacific	12,400		9,850
Other long-duration contracts	136		117
Claims liability and incurred but not reported claims	5,367		5,439
Additional liability	101		5
Unearned revenue liability	829		477
Total liability for future policy benefits	$	59,836	$	47,067

Undiscounted and Discounted Future Gross Premiums and Expected Future Benefits

The amount of undiscounted and discounted expected future gross premiums and expected future benefit payments for the liability for future policy benefits included in the rollforwards as of March 31, 2025 and 2024 is as follows (dollars in millions):


	March 31,
	2025				2024
	Undiscounted		Discounted		Undiscounted		Discounted
Expected future gross premiums
Traditional:
U.S. and Latin America	$	183,915	$	84,218	$	179,131	$	82,691
Canada	52,094		21,326		55,118		21,591
Europe, Middle East and Africa	28,701		15,240		25,928		14,388
Asia Pacific	104,940		42,040		94,316		38,412
Financial Solutions:
U.S. and Latin America	2,648		1,666		2,914		1,829
Canada	5,689		3,768		4,390		2,900
Europe, Middle East and Africa	129,865		65,091		98,292		55,187
Asia Pacific	5,292		3,707		3,743		2,840

Expected future benefit payments
Traditional:
U.S. and Latin America	$	196,448	$	83,212	$	189,341	$	81,087
Canada	53,586		21,304		56,998		21,670
Europe, Middle East and Africa	28,718		14,829		25,709		13,774
Asia Pacific	101,929		35,804		90,670		32,824
Financial Solutions:
U.S. and Latin America	22,679		10,940		14,071		8,296
Canada	17,252		7,993		4,128		2,738
Europe, Middle East and Africa	139,460		70,120		100,423		56,214
Asia Pacific	27,778		14,570		17,399		11,499

Gross Premiums And Interest Expense Liability Future Policy Benefits

The amount of gross premiums and interest expense recognized in the condensed consolidated statements of income for the liability for future policy benefits included in the rollforwards for the three months ended March 31, 2025 and 2024 is as follows (dollars in millions):


	Gross Premiums				Interest Expense
	March 31,				March 31,
	2025		2024		2025		2024
Traditional:
U.S. and Latin America	$	1,589	$	1,473	$	174	$	144
Canada	264		271		52		54
Europe, Middle East and Africa	444		371		10		10
Asia Pacific	738		688		43		40
Financial Solutions:
U.S. and Latin America	105		1,912		$	123	68
Canada	52		23		53		—
Europe, Middle East and Africa	255		207		62		53
Asia Pacific	111		46		59		17
Total	$	3,558	$	4,991	$	576	$	386

During the three months ended March 31, 2025 and 2024, no material charges were incurred resulting from net premiums exceeding gross premiums.