Long-duration insurance contracts

6 Months Ended

Jun. 30, 2024

Insurance [Abstract]

Long-duration insurance contracts

Note 16. Long-duration insurance contracts

A summary of our long-duration life, annuity and health insurance benefits liabilities as of June 30, 2024 and 2023, disaggregated for our two primary product categories, periodic payment annuity and life and health insurance, follows. Other liabilities include incurred-but-not reported claims and claims in the course of settlement. Amounts are in millions.

	June 30,
	2024		2023
Periodic payment annuity	$	10,378	$	10,820
Life and health		4,167		5,523
Other		2,955		3,292
	$	17,500	$	19,635

Notes to Consolidated Financial Statements

Note 16. Long-duration insurance contracts

Reconciliations of periodic payment annuity and life and health insurance benefits liabilities for the first six months of 2024 and 2023 follow (in millions). The information reflects the changes in discounted present values of expected future policy benefits and expected future net premiums before reinsurance ceded. Net premiums represent the portion of expected gross premiums that are required to provide for future policy benefits and variable expenses.

	Periodic payment annuity						Life and health
	2024			2023			2024			2023
Expected future policy benefits:
Balance at the beginning of the year	$	11,212		$	10,640		$	52,665		$	52,008
Balance at the beginning of the year - original discount rates		11,681			11,549			65,871			63,584
Effect of cash flow assumption changes		—			—			(324	)		10
Effect of actual versus expected experience		4			2			(12,836	)		(411	)
Change in benefits, net		(235	)		(230	)		(943	)		(1,346	)
Interest accrual		273			266			575			852
Foreign currency effect		15			83			(459	)		100
Balance at June 30 - original discount rates		11,738			11,670			51,884			62,789
Effect of changes in discount rate assumptions		(1,360	)		(850	)		(12,739	)		(12,741	)
Balance at June 30	$	10,378		$	10,820		$	39,145		$	50,048
Expected future net premiums:
Balance at the beginning of the year							$	46,916		$	46,129
Balance at the beginning of the year - original discount rates								58,731			56,535
Effect of cash flow assumption changes								(326	)		18
Effect of actual versus expected experience								(11,225	)		(251	)
Change in premiums, net								(876	)		(1,222	)
Interest accrual								507			745
Foreign currency effect								(436	)		83
Balance at June 30 - original discount rates								46,375			55,908
Effect of changes in discount rate assumptions								(11,397	)		(11,383	)
Balance at June 30							$	34,978		$	44,525
Liabilities for future policy benefits:
Balance at June 30	$	10,378		$	10,820		$	4,167		$	5,523
Reinsurance recoverables		—			—			(49	)		(1,549	)
Balance at June 30, net of reinsurance recoverables	$	10,378		$	10,820		$	4,118		$	3,974

Liabilities for future life and health policy benefits and reinsurance recoverables declined in the first six months of 2024, primarily attributable to the commutations of certain life reinsurance contracts. The impacts of these contract commutations on expected future policy benefits and future net premiums were reflected in effects of actual versus expected experience.

Notes to Consolidated Financial Statements

Note 16. Long-duration insurance contracts

Other information relating to our long-duration insurance liabilities as of June 30, 2024 and 2023 follows (dollars in millions).

	Periodic payment annuity						Life and health
	2024			2023			2024			2023
Undiscounted expected future gross premiums	$	—		$	—		$	94,942		$	108,089
Discounted expected future gross premiums		—			—			55,787			65,599
Undiscounted expected future benefits		30,867			31,232			86,253			103,012
Weighted average discount rate		5.7	%		5.3	%		5.2	%		5.0	%
Weighted average accretion rate		4.8	%		4.8	%		2.7	%		3.3	%
Weighted average duration	16 years			18 years			13 years			14 years

Gross premiums earned and interest expense before reinsurance ceded for the first six months of 2024 and 2023 were as follows (in millions).

	Gross premiums				Interest expense
	2024		2023		2024		2023
Periodic payment annuity	$	—	$	—	$	273	$	266
Life and health		1,870		1,644		68		107