Future Policy Benefits (Tables)

6 Months Ended

Jun. 30, 2025

Insurance [Abstract]

Liability for Future Policy Benefit, Activity

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 six months ended June 30, 2025 and 2024 (dollars in millions):

For the six months ended June 30, 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	(487)			67			375			(174)
Adjusted balance, beginning of year	77,394			20,995			16,286			44,627
Issuances (1)	4,467			236			692			2,585
Interest accrual (2)	1,778			364			290			625
Net premiums collected (3)	(4,464)			(482)			(927)			(1,212)
Derecognition (4)	—			—			—			—
Foreign currency translation	2			1,201			1,544			2,478
Ending balance at original discount rate	79,177			22,314			17,885			49,103
Effect of changes in discount rate assumptions	(8,281)			(4,617)			(2,979)			(13,052)
Balance, end of period	$	70,896		$	17,697		$	14,906		$	36,051
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	(419)			72			371			(198)
Adjusted balance, beginning of year	90,292			24,381			17,736			49,514
Issuances (1)	4,467			236			692			2,585
Interest accrual (2)	2,131			470			312			714
Benefit payments (5)	(2,942)			(564)			(845)			(1,053)
Derecognition (4)	—			—			—			—
Foreign currency translation	5			1,397			1,698			2,588
Ending balance at original discount rate	93,953			25,920			19,593			54,348
Effect of changes in discount rate assumptions	(10,645)			(3,996)			(3,396)			(15,482)
Balance, end of period	$	83,308		$	21,924		$	16,197		$	38,866
Liability for future policy benefits	$	12,412		$	4,227		$	1,291		$	2,815
Less: reinsurance recoverable	(788)			(261)			(17)			(78)
Net liability for future policy benefits	$	11,624		$	3,966		$	1,274		$	2,737
Weighted average duration of the liability (in years)	11			14			8			15
Weighted average interest accretion rate	4.7		%	3.6		%	3.4		%	2.7		%
Weighted average current discount rate	5.6		%	4.9		%	5.6		%	4.6		%

(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 six months ended June 30, 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	(398)			112			254			173
Adjusted balance, beginning of year	76,545			22,801			15,582			42,914
Issuances (1)	1,599			267			521			1,959
Interest accrual (2)	1,730			376			256			548
Net premiums collected (3)	(2,621)			(494)			(732)			(1,086)
Derecognition (4)	(1,000)			—			—			—
Foreign currency translation	(4)			(728)			(114)			(1,598)
Ending balance at original discount rate	76,249			22,222			15,513			42,737
Effect of changes in discount rate assumptions	(7,979)			(4,753)			(2,923)			(12,596)
Balance, end of period	$	68,270		$	17,469		$	12,590		$	30,141
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	(501)			106			259			144
Adjusted balance, beginning of year	88,535			26,381			17,015			47,514
Issuances (1)	1,599			268			523			1,959
Interest accrual (2)	2,015			483			277			628
Benefit payments (5)	(2,973)			(523)			(757)			(979)
Derecognition (4)	(1,008)			—			—			—
Foreign currency translation	(4)			(853)			(136)			(1,683)
Ending balance at original discount rate	88,164			25,756			16,922			47,439
Effect of changes in discount rate assumptions	(9,988)			(4,125)			(3,208)			(14,728)
Balance, end of period	$	78,176		$	21,631		$	13,714		$	32,711
Liability for future policy benefits	$	9,906		$	4,162		$	1,124		$	2,570
Less: reinsurance recoverable	(741)			(280)			(33)			(108)
Net liability for future policy benefits	$	9,165		$	3,882		$	1,091		$	2,462
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	5.6		%	5.0		%	5.7		%	4.8		%

(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.

The Company’s Traditional business actual-to-expected variances and the effects of changes in cash flow and discount rate assumptions for the six months ended June 30, 2025 and 2024 are summarized in the tables below:

For the six months ended June 30, 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	$14.8 billion	None	$68 million	$(72) million
Canada – Traditional	$3.6 billion	None	$5 million	$(98) million
Europe, Middle East and Africa – Traditional	$1.7 billion	None	$(4) million	$(83) million
Asia Pacific – Traditional	$5.2 billion	None	$(24) million	$(122) million

For the six months ended June 30, 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 – Traditional	$11.9 billion	None	$(103) million	$(863) million
Canada – Traditional	$3.5 billion	None	$(6) million	$(243) million
Europe, Middle East and Africa – Traditional	$1.4 billion	None	$5 million	$(66) million
Asia Pacific – Traditional	$4.7 billion	None	$(29) million	$(167) 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), financial reinsurance and pension risk transfer transactions, for the six months ended June 30, 2025 and 2024 (dollars in millions):

For the six months ended June 30, 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	(25)			7			(60)			(17)
Adjusted balance, beginning of year	1,321			3,621			71,300			2,741
Issuances (1)	2,118			—			7,619			2,452
Interest accrual (2)	20			66			1,325			23
Net premiums collected (3)	(2,185)			(185)			(4,388)			(2,978)
Derecognition (4)	—			—			(257)			—
Foreign currency translation	—			202			7,556			247
Ending balance at original discount rate	1,274			3,704			83,155			2,485
Effect of changes in discount rate assumptions	(220)			(209)			(9,264)			(511)
Balance, end of period	$	1,054		$	3,495		$	73,891		$	1,974
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	(28)			7			(66)			(22)
Adjusted balance, beginning of year	9,461			7,941			78,224			14,604
Issuances (1)	2,133			—			7,619			2,462
Interest accrual (2)	265			174			1,463			160
Benefit payments (5)	(526)			(235)			(3,077)			(324)
Derecognition (4)	—			—			(257)			—
Foreign currency translation	—			452			8,267			1,337
Ending balance at original discount rate	11,333			8,332			92,239			18,239
Effect of changes in discount rate assumptions	(517)			(139)			(10,210)			(3,092)
Balance, end of period	$	10,816		$	8,193		$	82,029		$	15,147
Cumulative amount of fair value hedging adjustments	$	7		$	—		$	—		$	—
Liability for future policy benefits	$	9,769		$	4,698		$	8,138		$	13,173
Less: reinsurance recoverable	(1,354)			—			—			—
Net liability for future policy benefits	$	8,415		$	4,698		$	8,138		$	13,173
Weighted average duration of the liability (in years)	9			12			10			14
Weighted average interest accretion rate	4.1		%	4.0		%	3.5		%	1.9		%
Weighted average current discount rate	5.4		%	4.8		%	5.2		%	3.7		%

(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 six months ended June 30, 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	(3)			(6)			897			(38)
Adjusted balance, beginning of year	1,452			3,178			55,729			2,019
Issuances (1)	2,175			4,975			8,901			5,497
Interest accrual (2)	22			61			864			12
Net premiums collected (3)	(2,246)			(4,182)			(2,839)			(5,755)
Derecognition (4)	—			—			—			—
Foreign currency translation	—			(100)			(736)			(249)
Ending balance at original discount rate	1,403			3,932			61,919			1,524
Effect of changes in discount rate assumptions	(262)			(311)			(9,325)			(150)
Balance, end of period	$	1,141		$	3,621		$	52,594		$	1,374
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	(6)			(6)			901			(39)
Adjusted balance, beginning of year	6,837			3,204			61,839			7,980
Issuances (1)	2,305			4,983			8,901			5,646
Interest accrual (2)	176			103			972			71
Benefit payments (5)	(322)			(195)			(2,350)			(193)
Derecognition (4)	—			—			—			—
Foreign currency translation	—			(92)			(787)			(1,304)
Ending balance at original discount rate	8,996			8,003			68,575			12,200
Effect of changes in discount rate assumptions	(616)			(231)			(10,267)			(1,029)
Balance, end of period	$	8,380		$	7,772		$	58,308		$	11,171
Cumulative amount of fair value hedging adjustments	$	(2)		$	—		$	—		$	—
Liability for future policy benefits	$	7,237		$	4,151		$	5,714		$	9,797
Less: reinsurance recoverable	(849)			—			—			—
Net liability for future policy benefits	$	6,388		$	4,151		$	5,714		$	9,797
Weighted average duration of the liability (in years)	8			13			10			15
Weighted average interest accretion rate	3.8		%	3.6		%	3.0		%	1.4		%
Weighted average current discount rate	5.5		%	4.9		%	5.2		%	2.4		%

(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.

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 six months ended June 30, 2025 and 2024 are summarized in the tables below:

For the six months ended June 30, 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	$10.1 billion	None	$(3) million	$100 million
Canada – Financial Solutions	$4.6 billion	None	$—	$(122) million
Europe, Middle East and Africa – Financial Solutions	$9.1 billion	None	$(6) million	$(51) million
Asia Pacific – Financial Solutions	$15.8 billion	None	$(5) million	$(995) million

For the six months ended June 30, 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	$7.6 billion	None	$(3) million	$(194) million
Canada – Financial Solutions	$4.1 billion	None	$—	$77 million
Europe, Middle East and Africa – Financial Solutions	$6.7 billion	None	$4 million	$(289) million
Asia Pacific – Financial Solutions	$10.7 billion	None	$(1) million	$(107) 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 June 30, 2025 and 2024 is as follows (dollars in millions):

	June 30,
	2025		2024
Liability for future policy benefits included in the rollforwards:
Traditional:
U.S. and Latin America	$	12,412	$	9,906
Canada	4,227		4,162
Europe, Middle East and Africa	1,291		1,124
Asia Pacific	2,815		2,570
Financial Solutions:
U.S. and Latin America	9,769		7,237
Canada	4,698		4,151
Europe, Middle East and Africa	8,138		5,714
Asia Pacific	13,173		9,797
Other long-duration contracts	145		125
Claims liability and incurred but not reported claims	5,913		5,523
Additional liability	125		4
Unearned revenue liability	825		466
Total liability for future policy benefits	$	63,531	$	50,779

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 June 30, 2025 and 2024 is as follows (dollars in millions):

	June 30,
	2025				2024
	Undiscounted		Discounted		Undiscounted		Discounted
Expected future gross premiums
Traditional:
U.S. and Latin America	$	184,475	$	84,387	$	177,026	$	80,236
Canada	55,343		21,992		54,822		21,578
Europe, Middle East and Africa	30,549		16,626		26,345		14,357
Asia Pacific	113,413		45,709		96,035		38,402
Financial Solutions:
U.S. and Latin America	2,601		1,645		2,865		1,774
Canada	5,918		3,864		6,341		4,002
Europe, Middle East and Africa	148,624		75,159		111,756		57,128
Asia Pacific	5,507		3,778		3,578		2,660
Expected future benefit payments
Traditional:
U.S. and Latin America	$	196,697	$	83,308	$	185,828	$	78,176
Canada	56,871		21,924		56,587		21,631
Europe, Middle East and Africa	30,625		16,197		26,138		13,714
Asia Pacific	109,518		38,866		92,090		32,711
Financial Solutions:
U.S. and Latin America	22,386		10,816		14,431		8,380
Canada	18,137		8,193		17,846		7,772
Europe, Middle East and Africa	160,718		82,029		114,188		58,308
Asia Pacific	30,889		15,147		17,653		11,171

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 six months ended June 30, 2025 and 2024 is as follows (dollars in millions):

	Gross Premiums				Interest Expense
	June 30,				June 30,
	2025		2024		2025		2024
Traditional:
U.S. and Latin America	$	3,245	$	3,061	$	353	$	285
Canada	552		553		106		107
Europe, Middle East and Africa	892		732		22		21
Asia Pacific	1,516		1,381		89		80
Financial Solutions:
U.S. and Latin America	96		2,212		245		154
Canada	97		71		108		42
Europe, Middle East and Africa	569		429		138		108
Asia Pacific	229		96		137		59
Total	$	7,196	$	8,535	$	1,198	$	856

During the six months ended June 30, 2025 and 2024, no material charges were incurred resulting from net premiums exceeding gross premiums.