Future Policy Benefits (Tables)

9 Months Ended

Sep. 30, 2025

Insurance [Abstract]

Liability for Future Policy Benefit, Activity

Significant assumptions used to compute the liability for future policy benefits for the Traditional business include mortality, morbidity, lapse rates and discount rates (both accretion and current). During the third quarter of 2025 and 2024, the Company completed its annual assumptions review resulting in a $183 million and $39 million increase in the Company’s liability for future policy benefits for its Traditional business, respectively. The increases in the liability in 2025 and 2024 were primarily the result of updating the mortality and lapse assumptions used to measure the liability for future policy benefits.

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 nine months ended September 30, 2025 and 2024 (dollars in millions):

For the nine months ended September 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	(352)			570			38			150
Effect of actual variances from expected experience	(467)			70			546			(668)
Adjusted balance, beginning of year	77,062			21,568			16,495			44,283
Issuances (1)	7,821			404			1,106			3,752
Interest accrual (2)	2,688			559			444			952
Net premiums collected (3)	(5,814)			(723)			(1,413)			(1,854)
Derecognition (4)	(812)			—			—			—
Foreign currency translation	4			694			1,295			1,582
Ending balance at original discount rate	80,949			22,502			17,927			48,715
Effect of changes in discount rate assumptions	(7,000)			(4,501)			(3,013)			(12,252)
Balance, end of period	$	73,949		$	18,001		$	14,914		$	36,463
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	(381)			561			261			148
Effect of actual variances from expected experience	(406)			73			536			(733)
Adjusted balance, beginning of year	89,924			24,943			18,162			49,127
Issuances (1)	8,521			404			1,106			3,752
Interest accrual (2)	3,227			719			479			1,086
Benefit payments (5)	(4,502)			(808)			(1,300)			(1,553)
Derecognition (4)	(812)			—			—			—
Foreign currency translation	6			808			1,427			1,649
Ending balance at original discount rate	96,364			26,066			19,874			54,061
Effect of changes in discount rate assumptions	(8,917)			(3,934)			(3,590)			(14,609)
Balance, end of period	$	87,447		$	22,132		$	16,284		$	39,452
Liability for future policy benefits	$	13,498		$	4,131		$	1,370		$	2,989
Less: reinsurance recoverable	(834)			(254)			(15)			(78)
Net liability for future policy benefits	$	12,664		$	3,877		$	1,355		$	2,911
Weighted average duration of the liability (in years)	11			14			8			15
Weighted average interest accretion rate	4.6		%	3.7		%	3.5		%	2.8		%
Weighted average current discount rate	5.4		%	4.9		%	5.7		%	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 nine months ended September 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	67			(592)			187			975
Effect of actual variances from expected experience	(510)			183			421			210
Adjusted balance, beginning of year	76,500			22,280			15,936			43,926
Issuances (1)	4,980			385			861			2,825
Interest accrual (2)	2,617			560			394			843
Net premiums collected (3)	(4,390)			(737)			(1,119)			(1,653)
Derecognition (4)	(1,000)			—			—			—
Foreign currency translation	(6)			(480)			751			(139)
Ending balance at original discount rate	78,701			22,008			16,823			45,802
Effect of changes in discount rate assumptions	(4,225)			(4,388)			(2,803)			(12,360)
Balance, end of period	$	74,476		$	17,620		$	14,020		$	33,442
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	36			(620)			212			1,048
Effect of actual variances from expected experience	(623)			177			417			121
Adjusted balance, beginning of year	88,449			25,832			17,385			48,539
Issuances (1)	4,980			385			861			2,825
Interest accrual (2)	3,049			721			425			964
Benefit payments (5)	(4,292)			(799)			(1,115)			(1,476)
Derecognition (4)	(1,008)			—			—			—
Foreign currency translation	(5)			(563)			794			(138)
Ending balance at original discount rate	91,173			25,576			18,350			50,714
Effect of changes in discount rate assumptions	(5,364)			(3,651)			(3,131)			(14,496)
Balance, end of period	$	85,809		$	21,925		$	15,219		$	36,218
Liability for future policy benefits	$	11,333		$	4,305		$	1,199		$	2,776
Less: reinsurance recoverable	(726)			(272)			(24)			(85)
Net liability for future policy benefits	$	10,607		$	4,033		$	1,175		$	2,691
Weighted average duration of the liability (in years)	12			14			8			15
Weighted average interest accretion rate	4.6		%	3.6		%	3.3		%	2.6		%
Weighted average current discount rate	5.1		%	4.8		%	5.5		%	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.

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

For the nine months ended September 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	$15.4 billion	$(29) million	$61 million	$375 million
Canada – Traditional	$3.6 billion	$(9) million	$3 million	$(152) million
Europe, Middle East and Africa – Traditional	$1.9 billion	$223 million	$(10) million	$(243) million
Asia Pacific – Traditional	$5.3 billion	$(2) million	$(65) million	$(49) million

For the nine months ended September 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	$12.5 billion	$(31) million	$(113) million	$7 million
Canada – Traditional	$3.6 billion	$(28) million	$(6) million	$(134) million
Europe, Middle East and Africa – Traditional	$1.5 billion	$25 million	$(4) million	$(109) million
Asia Pacific – Traditional	$4.9 billion	$73 million	$(89) million	$(171) million

Financial Solutions Business

Significant assumptions used to compute the liability for future policy benefits for the Financial Solutions business include mortality, morbidity, lapse rates and discount rates (both accretion and current). During the third quarter of 2025 and 2024, the Company completed its annual assumptions review resulting in a $24 million decrease and $20 million increase in the Company’s liability for future policy benefits for its Financial Solutions business, respectively. The decrease and increase in the liability in 2025 and 2024, respectively, were primarily the result of updating the lapse and mortality assumptions used to measure the liability for future policy benefits.

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 nine months ended September 30, 2025 and 2024 (dollars in millions):

For the nine months ended September 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	—			—			(409)			—
Effect of actual variances from expected experience	(10)			6			(32)			(121)
Adjusted balance, beginning of year	1,336			3,620			70,919			2,637
Issuances (1)	2,118			—			15,195			2,657
Interest accrual (2)	30			99			2,078			31
Net premiums collected (3)	(2,219)			(278)			(7,283)			(3,227)
Derecognition (4)	—			—			(257)			—
Foreign currency translation	—			119			6,038			181
Ending balance at original discount rate	1,265			3,560			86,690			2,279
Effect of changes in discount rate assumptions	(194)			(182)			(10,484)			(621)
Balance, end of period	$	1,071		$	3,378		$	76,206		$	1,658
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	—			—			(433)			—
Effect of actual variances from expected experience	(13)			6			(51)			(127)
Adjusted balance, beginning of year	9,476			7,940			77,806			14,499
Issuances (1)	2,146			—			15,194			2,666
Interest accrual (2)	396			263			2,298			251
Benefit payments (5)	(784)			(347)			(4,834)			(499)
Derecognition (4)	—			—			(257)			—
Foreign currency translation	—			265			6,539			880
Ending balance at original discount rate	11,234			8,121			96,746			17,797
Effect of changes in discount rate assumptions	(332)			(125)			(11,507)			(3,729)
Balance, end of period	$	10,902		$	7,996		$	85,239		$	14,068
Cumulative amount of fair value hedging adjustments	$	8		$	—		$	—		$	—
Liability for future policy benefits	$	9,839		$	4,618		$	9,033		$	12,410
Less: reinsurance recoverable	(1,749)			—			—			—
Net liability for future policy benefits	$	8,090		$	4,618		$	9,033		$	12,410
Weighted average duration of the liability (in years)	9			12			9			14
Weighted average interest accretion rate	4.1		%	4.1		%	3.5		%	1.9		%
Weighted average current discount rate	5.3		%	4.8		%	5.4		%	4.0		%

(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 nine months ended September 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	12			—			(93)			1
Effect of actual variances from expected experience	(3)			(7)			1,025			(7)
Adjusted balance, beginning of year	1,464			3,177			55,764			2,051
Issuances (1)	2,755			4,983			9,881			6,443
Interest accrual (2)	33			96			1,364			22
Net premiums collected (3)	(2,867)			(4,284)			(4,046)			(6,823)
Derecognition (4)	—			—			—			—
Foreign currency translation	—			(56)			2,596			(52)
Ending balance at original discount rate	1,385			3,916			65,559			1,641
Effect of changes in discount rate assumptions	(179)			(204)			(8,677)			(232)
Balance, end of period	$	1,206		$	3,712		$	56,882		$	1,409
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	20			—			(90)			10
Effect of actual variances from expected experience	—			(7)			1,026			(8)
Adjusted balance, beginning of year	6,863			3,203			61,874			8,021
Issuances (1)	2,882			4,983			9,881			6,443
Interest accrual (2)	276			189			1,530			129
Benefit payments (5)	(538)			(310)			(3,676)			(326)
Derecognition (4)	—			—			—			—
Foreign currency translation	—			(3)			2,918			108
Ending balance at original discount rate	9,483			8,062			72,527			14,375
Effect of changes in discount rate assumptions	(215)			(33)			(9,571)			(1,544)
Balance, end of period	$	9,268		$	8,029		$	62,956		$	12,831
Cumulative amount of fair value hedging adjustments	$	32		$	—		$	—		$	—
Liability for future policy benefits	$	8,094		$	4,317		$	6,074		$	11,422
Less: reinsurance recoverable	(1,241)			—			—			—
Net liability for future policy benefits	$	6,853		$	4,317		$	6,074		$	11,422
Weighted average duration of the liability (in years)	8			13			10			15
Weighted average interest accretion rate	3.9		%	4.1		%	3.1		%	1.6		%
Weighted average current discount rate	4.9		%	4.7		%	5.0		%	2.8		%

(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 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 nine months ended September 30, 2025 and 2024 are summarized in the tables below:

For the nine months ended September 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	$10.0 billion	None	$(3) million	$260 million
Canada – Financial Solutions	$4.6 billion	None	None	$(135) million
Europe, Middle East and Africa – Financial Solutions	$10.1 billion	$(24) million	$(19) million	$(128) million
Asia Pacific – Financial Solutions	$15.5 billion	None	$(6) million	$(1.5) billion

For the nine months ended September 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	$8.1 billion	$8 million	$3 million	$124 million
Canada – Financial Solutions	$4.1 billion	None	None	$168 million
Europe, Middle East and Africa – Financial Solutions	$7.0 billion	$3 million	$1 million	$(241) million
Asia Pacific – Financial Solutions	$12.7 billion	$9 million	$(1) million	$(540) million

Reconciliation and Other Disclosures

The reconciliation of the rollforward of the liability for future policy benefits to the condensed consolidated balance sheets as of September 30, 2025 and 2024 is as follows (dollars in millions):

	September 30,
	2025		2024
Liability for future policy benefits included in the rollforwards:
Traditional:
U.S. and Latin America	$	13,498	$	11,333
Canada	4,131		4,305
Europe, Middle East and Africa	1,370		1,199
Asia Pacific	2,989		2,776
Financial Solutions:
U.S. and Latin America	9,839		8,094
Canada	4,618		4,317
Europe, Middle East and Africa	9,033		6,074
Asia Pacific	12,410		11,422
Other long-duration contracts	116		117
Claims liability and incurred but not reported claims	5,786		5,406
Additional liability	235		36
Unearned revenue liability	814		854
Cost of reinsurance liability	1,550		—
Total liability for future policy benefits	$	66,389	$	55,933

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 September 30, 2025 and 2024 are as follows (dollars in millions):

	September 30,
	2025				2024
	Undiscounted		Discounted		Undiscounted		Discounted
Expected future gross premiums
Traditional:
U.S. and Latin America	$	194,959	$	88,432	$	182,731	$	87,831
Canada	56,351		22,317		54,520		21,928
Europe, Middle East and Africa	30,092		16,513		28,668		15,609
Asia Pacific	113,661		46,387		103,658		42,453
Financial Solutions:
U.S. and Latin America	2,554		1,641		2,816		1,828
Canada	5,676		3,733		6,306		4,101
Europe, Middle East and Africa	157,690		77,444		111,948		57,940
Asia Pacific	5,235		3,471		4,089		2,988
Expected future benefit payments
Traditional:
U.S. and Latin America	$	203,397	$	87,447	$	191,246	$	85,809
Canada	57,445		22,132		56,312		21,925
Europe, Middle East and Africa	30,886		16,284		28,796		15,219
Asia Pacific	109,528		39,452		99,908		36,218
Financial Solutions:
U.S. and Latin America	22,213		10,902		15,257		9,268
Canada	17,625		7,996		17,933		8,029
Europe, Middle East and Africa	170,551		85,239		120,917		62,956
Asia Pacific	30,139		14,068		22,330		12,831

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

	Gross Premiums				Interest Expense
	September 30,				September 30,
	2025		2024		2025		2024
Traditional:
U.S. and Latin America	$	4,791	$	4,658	$	539	$	432
Canada	831		825		160		161
Europe, Middle East and Africa	1,341		1,101		35		31
Asia Pacific	2,335		2,095		134		121
Financial Solutions:
U.S. and Latin America	177		2,816		366		243
Canada	143		120		164		93
Europe, Middle East and Africa	897		669		220		166
Asia Pacific	325		158		220		107
Total	$	10,840	$	12,442	$	1,838	$	1,354

During the nine months ended September 30, 2025, the only material charge the Company incurred was a charge of $117 million due to net premiums exceeding gross premiums for one cohort in the U.K. (EMEA Traditional segment) as a result of updating the mortality assumptions in that period. No material charge was incurred during the nine months ended September 30, 2024, due to net premiums exceeding gross premiums.

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

	September 30,
	2025		2024
Liability for future policy benefits included in the rollforwards:
Traditional:
U.S. and Latin America	$	13,498	$	11,333
Canada	4,131		4,305
Europe, Middle East and Africa	1,370		1,199
Asia Pacific	2,989		2,776
Financial Solutions:
U.S. and Latin America	9,839		8,094
Canada	4,618		4,317
Europe, Middle East and Africa	9,033		6,074
Asia Pacific	12,410		11,422
Other long-duration contracts	116		117
Claims liability and incurred but not reported claims	5,786		5,406
Additional liability	235		36
Unearned revenue liability	814		854
Cost of reinsurance liability	1,550		—
Total liability for future policy benefits	$	66,389	$	55,933

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 September 30, 2025 and 2024 are as follows (dollars in millions):

	September 30,
	2025				2024
	Undiscounted		Discounted		Undiscounted		Discounted
Expected future gross premiums
Traditional:
U.S. and Latin America	$	194,959	$	88,432	$	182,731	$	87,831
Canada	56,351		22,317		54,520		21,928
Europe, Middle East and Africa	30,092		16,513		28,668		15,609
Asia Pacific	113,661		46,387		103,658		42,453
Financial Solutions:
U.S. and Latin America	2,554		1,641		2,816		1,828
Canada	5,676		3,733		6,306		4,101
Europe, Middle East and Africa	157,690		77,444		111,948		57,940
Asia Pacific	5,235		3,471		4,089		2,988
Expected future benefit payments
Traditional:
U.S. and Latin America	$	203,397	$	87,447	$	191,246	$	85,809
Canada	57,445		22,132		56,312		21,925
Europe, Middle East and Africa	30,886		16,284		28,796		15,219
Asia Pacific	109,528		39,452		99,908		36,218
Financial Solutions:
U.S. and Latin America	22,213		10,902		15,257		9,268
Canada	17,625		7,996		17,933		8,029
Europe, Middle East and Africa	170,551		85,239		120,917		62,956
Asia Pacific	30,139		14,068		22,330		12,831

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