Long-duration insurance contracts

12 Months Ended

Dec. 31, 2024

Insurance [Abstract]

Long-duration insurance contracts

(18)Long-duration insurance contracts

A summary of our long-duration life, annuity and health insurance benefits liabilities disaggregated by our two principal product categories, periodic payment annuity (“annuities”) and life and health insurance, follows (in millions). Other liabilities include IBNR claims and claims in the course of settlement.

	December 31,
	2024		2023
Annuities	$	10,276	$	11,212
Life and health		4,490		5,749
Other liabilities		2,850		3,252
	$	17,616	$	20,213

Reconciliations of the liabilities for each of our principal product categories for each of the two years ended December 31, 2024 follow. This 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. Amounts are in millions.

	Annuities						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		—			—			(348	)		(829	)
Effect of actual from expected experience		3			5			(12,711	)		(352	)
Change in benefits, net		(478	)		(470	)		1,991			1,616
Interest accrual		550			537			1,234			1,787
Foreign currency effect		1			60			(867	)		65
Balance at December 31 - original discount rates		11,757			11,681			55,170			65,871
Effect of changes in discount rate assumptions		(1,481	)		(469	)		(11,386	)		(13,206	)
Balance at December 31	$	10,276		$	11,212		$	43,784		$	52,665
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								(416	)		(880	)
Effect of actual from expected experience								(11,104	)		(181	)
Change in premiums, net								1,984			1,645
Interest accrual								1,099			1,566
Foreign currency effect								(794	)		46
Balance at December 31 - original discount rates								49,500			58,731
Effect of changes in discount rate assumptions								(10,206	)		(11,815	)
Balance at December 31							$	39,294		$	46,916
Liability for future policy benefits:
Balance at December 31	$	10,276		$	11,212		$	4,490		$	5,749
Reinsurance recoverables		—			—			(46	)		(1,571	)
Balance at December 31,   net of reinsurance recoverables	$	10,276		$	11,212		$	4,444		$	4,178

Liabilities for future policy benefits and reinsurance recoverables declined in 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 included in the effects of actual versus expected experience.

Notes to Consolidated Financial Statements

(18)Long-duration insurance contracts

Other information relating to our long-duration insurance liabilities as of December 31, 2024 and 2023 follows (dollars in millions).

	Annuities						Life and health
	2024			2023			2024			2023
Undiscounted expected future gross premiums	$	—		$	—		$	100,413		$	117,078
Discounted expected future gross premiums		—			—			58,881			66,692
Undiscounted expected future benefits		30,592			31,066			91,493			111,630
Weighted average discount rate		5.8	%		5.1	%		4.9	%		5.1	%
Weighted average accretion rate		4.8	%		4.8	%		2.7	%		3.3	%
Weighted average duration	16 years			18 years			13 years			13 years

Gross premiums earned and interest expense before reinsurance ceded for each of the two years ended December 31, 2024 follows (in millions).

	Gross Premiums				Interest Expense
	2024		2023		2024		2023
Annuities	$	—	$	—	$	550	$	537
Life and health		3,830		3,627		135		221