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Future Policy Benefits

9 Months Ended

Sep. 30, 2023

Liability for Future Policy Benefits and Unpaid Claims Disclosure

. Future Policy Benefits

The Company establishes liabilities for amounts payable under insurance policies. These liabilities are comprised of traditional and limited-payment contracts and associated DPLs, additional insurance liabilities, participating life and short-duration contracts.

The LDTI transition adjustments related to traditional and limited-payment contracts, DPLs, and additional insurance liabilities, as well as the associated ceded recoverables, as described in Note 1, were as follows at the Transition Date:


	U.S. Annuities		Asia Whole and Term Life & Endowments		Asia Accident & Health		Latin America Fixed Annuities		MetLife Holdings Long-Term Care		MetLife Holdings Participating Life		Other Long- Duration		Short-Duration and Other		Total
	(In millions)
Balance, future policy benefits, at December 31, 2020	$	66,030	$	17,990	$	16,330	$	8,393	$	14,281	$	51,148	$	19,128	$	13,356	$	206,656
Removal of additional insurance liabilities for separate presentation (1)	(4)		—		—		—		—		—		(6,561)		—		(6,565)
Subtotal - pre-adoption balance, excluding additional liabilities	66,026		17,990		16,330		8,393		14,281		51,148		12,567		13,356		200,091
Removal of related amounts in AOCI	(5,914)		—		—		(295)		(1,210)		—		(492)		—		(7,911)
Reclassification of carrying amounts of contracts and contract features that are market risk benefits	—		—		—		—		—		—		(176)		—		(176)
Adjustment of future policy benefits to remeasure cohorts where net premiums exceed gross premiums under the modified retrospective approach	337		51		154		121		—		—		56		—		719
Effect of remeasurement of future policy benefits to an upper-medium grade discount rate	15,834		4,386		285		2,869		8,270		—		2,475		—		34,119
Other balance sheet reclassifications and adjustments upon adoption of the LDTI standard	(7,416)		4		47		(1)		—		—		(124)		—		(7,490)
Removal of remeasured deferred profit liabilities for separate presentation (1)	(2,897)		(225)		(691)		(570)		—		—		(275)		—		(4,658)
Balance, traditional and limited-payment contracts, at January 1, 2021	$	65,970	$	22,206	$	16,125	$	10,517	$	21,341	$	51,148	$	14,031	$	13,356	$	214,694

Balance, deferred profit liabilities at January 1, 2021	$	2,897	$	225	$	691	$	570	$	—	$	—	$	275	$	—	$	4,658

Balance, ceded recoverables on traditional and limited-payment contracts at December 31, 2020	$	203	$	—	$	32	$	—	$	—			$	1,052			$	1,287
Effect of remeasurement of the ceded recoverable to an upper-medium grade discount rate	135		(15)		(66)		—		—				297				351
Adjustments for loss contracts (with net premiums in excess of gross premiums) under the modified retrospective approach	—		—		—		—		—				32				32
Adjustments for the cumulative effect of adoption on ceded recoverables on traditional and limited-payment contract	6		—		(2)		—		—				10				14
Balance ceded recoverables on traditional and limited-payment contracts at January 1, 2021	$	344	$	(15)	$	(36)	$	—	$	—			$	1,391			$	1,684

__________________

(1) LDTI requires separate disaggregated rollforwards of the additional insurance liabilities balance and the traditional and limited-payment FPBs. Therefore, the additional insurance liabilities and DPL amounts that are recorded in the FPB financial statement line item are removed to derive the opening balance of traditional and limited-payment contracts at the Transition Date.


	Asia Variable Life		Asia Universal and Variable Universal Life		MetLife Holdings Universal and Variable Universal Life		Other Long- Duration		Total
	(In millions)
Additional insurance liabilities at December 31, 2020	$	1,824	$	788	$	1,976	$	1,977	$	6,565
Reclassification of carrying amounts of contracts and contract features that are market risk benefits	—		—		—		(1,642)		(1,642)
Adjustments for the cumulative effect of adoption on additional insurance liabilities	—		—		38		45		83
Additional insurance liabilities at January 1, 2021	$	1,824	$	788	$	2,014	$	380	$	5,006

Ceded recoverables on additional insurance liabilities at December 31, 2020	$	—	$	—	$	719	$	8	$	727
Reclassification of carrying amounts of contracts and contract features that are reinsured market risk benefits	—		—		—		(8)		(8)
Adjustments for the cumulative effect of adoption on ceded recoverables on additional insurance liabilities	—		—		1		—		1
Ceded recoverables on additional insurance liabilities at January 1, 2021	$	—	$	—	$	720	$	—	$	720

Balance, traditional and limited-payment contracts, at January 1, 2021									$	214,694
Balance, deferred profit liabilities at January 1, 2021									4,658
Balance, additional insurance liabilities at January 1, 2021									5,006
Total future policy benefits at January 1, 2021									$	224,358

The Company’s future policy benefits on the interim condensed consolidated balance sheets was as follows at:


	September 30, 2023		December 31, 2022
	(In millions)
Traditional and Limited-Payment Contracts:
U.S. - Annuities	$	57,496	$	58,495
Asia:
Whole and term life & endowments	11,404		12,792
Accident & health	9,329		10,040
Latin America - Fixed annuities	8,662		9,265
MetLife Holdings - Long-term care	13,025		13,845
Deferred Profit Liabilities:
U.S. - Annuities	3,647		3,327
Asia:
Whole and term life & endowments	592		510
Accident & health	762		760
Latin America - Fixed annuities	546		560
Additional Insurance Liabilities:
Asia:
Variable life	1,193		1,381
Universal and variable universal life	386		455
MetLife Holdings - Universal and variable universal life	2,273		2,156
MetLife Holdings - Participating life	49,717		50,371
Other long-duration (1)	9,676		10,101
Short-duration and other	13,047		13,164
Total	$	181,755	$	187,222

__________________

(1) This balance represents liabilities for various smaller product lines across multiple segments, as well as Corporate & Other.

Rollforwards - Traditional and Limited-Payment Contracts

The following information about the direct and assumed liability for future policy benefits includes disaggregated rollforwards of expected future net premiums and expected future benefits. The products grouped within these rollforwards were selected based upon common characteristics and valuations using similar inputs, judgments, assumptions and methodologies within a particular segment of the business. The adjusted balance in each disaggregated rollforward reflects the remeasurement (gains) losses.

U.S. - Annuities

The U.S. segment’s annuities products include pension risk transfers, certain structured settlements and certain institutional income annuities, which are mainly single premium spread-based products. Information regarding these products was as follows:


	Nine Months Ended September 30,
	2023			2022
	(Dollars in millions)
Present Value of Expected Net Premiums
Balance, beginning of period, at current discount rate at balance sheet date	$	—		$	—

Balance, beginning of period, at original discount rate	$	—		$	—
Effect of changes in cash flow assumptions (1)	—			—
Effect of actual variances from expected experience (2)	(89)			(15)
Adjusted balance	(89)			(15)
Issuances	4,422			12,500
Net premiums collected	(4,333)			(12,485)
Ending balance at original discount rate	—			—
Balance, end of period, at current discount rate at balance sheet date	$	—		$	—

Present Value of Expected Future Policy Benefits
Balance, beginning of period, at current discount rate at balance sheet date	$	58,695		$	62,954

Balance, beginning of period, at original discount rate	$	61,426		$	50,890
Effect of changes in cash flow assumptions (1)	(284)			(115)
Effect of actual variances from expected experience (2)	(222)			(82)
Adjusted balance	60,920			50,693
Issuances	4,420			12,598
Interest accrual	2,145			1,811
Benefit payments	(4,121)			(3,322)
Ending balance at original discount rate	63,364			61,780
Effect of changes in discount rate assumptions	(5,438)			(4,382)
Balance, end of period, at current discount rate at balance sheet date	57,926			57,398

Cumulative amount of fair value hedging adjustments	(430)			(169)
Net liability for future policy benefits	57,496			57,229
Less: Reinsurance recoverables	—			—
Net liability for future policy benefits, net of reinsurance	$	57,496		$	57,229

Undiscounted - Expected future benefit payments	$	119,270		$	114,766
Discounted - Expected future benefit payments (at current discount rate at balance sheet date)	$	57,926		$	57,398
Weighted-average duration of the liability	9 years			9 years
Weighted-average interest accretion (original locked-in) rate	4.7		%	4.4		%
Weighted-average current discount rate at balance sheet date	6.1		%	5.8		%

_________________

(1) For the nine months ended September 30, 2023, the net effect of changes in cash flow assumptions was largely offset by the corresponding impact in DPL associated with the U.S. segment’s annuities products of $211 million. For the nine months ended September 30, 2022, the net effect of changes in cash flow assumptions was more than offset by the corresponding impact in DPL associated with the U.S. segment’s annuities products of $128 million.

(2) For the nine months ended September 30, 2023 and 2022, the net effect of actual variances from expected experience was largely offset by the corresponding impact in DPL associated with the U.S. segment’s annuities products of $95 million and $40 million, respectively.

Significant Methodologies and Assumptions

The principal inputs used in the establishment of the FPB for the U.S. segment’s annuities products include actual premiums, actual benefits, in-force data, locked-in claim-related expense, the locked-in interest accretion rate, the current upper-medium grade discount rate at the balance sheet date and best estimate mortality assumptions.

For the nine months ended September 30, 2023 and 2022, the net effect of changes in cash flow assumptions was primarily driven by updates in biometric assumptions related to mortality.

For the nine months ended September 30, 2023 and 2022, the net effect of actual variances from expected experience was primarily driven by favorable mortality.

When single-premium annuity contracts are issued, the FPB reserve is required to be measured at an upper-medium grade discount rate. Due to differences between the upper-medium grade discount rate and pricing assumptions used to determine the contractual premium, the initial FPB reserve at issue for a particular cohort may be greater than the contractual premium received, and the difference must be recognized as an immediate loss at issue. On these cohorts, future experience that differs from expected experience and changes in cash flow assumptions result in the recognition of remeasurement gains and losses with net remeasurement gains limited to the amount of the original loss at issue, after which any favorable experience is deferred and recorded within the DPL. For the three months and nine months ended September 30, 2022, the Company incurred a loss at issue of $91 million and $99 million, respectively, and recognized a net remeasurement loss of $47 million and $44 million, respectively, attributable to cohorts with no DPL or where the DPL was depleted during the period.

Asia

Whole and Term Life & Endowments

The Asia segment’s whole and term life & endowment products in Japan and Korea offer various life insurance contracts to customers. Information regarding these products was as follows:


	Nine Months Ended September 30,
		2023			2022
		(Dollars in millions)
Present Value of Expected Net Premiums
Balance, beginning of period, at current discount rate at balance sheet date		$	4,682		$	5,986

Balance, beginning of period, at original discount rate		$	4,943		$	5,881
Effect of changes in cash flow assumptions		11			71
Effect of actual variances from expected experience		(41)			35
Adjusted balance		4,913			5,987
Issuances		614			146
Interest accrual		43			33
Net premiums collected		(457)			(469)
Effect of foreign currency translation		(518)			(1,109)
Ending balance at original discount rate		4,595			4,588
Effect of changes in discount rate assumptions		(319)			(160)
Effect of foreign currency translation on the effect of changes in discount rate assumptions		23			5
Balance, end of period, at current discount rate at balance sheet date		$	4,299		$	4,433

Present Value of Expected Future Policy Benefits
Balance, beginning of period, at current discount rate at balance sheet date		$	17,463		$	24,453

Balance, beginning of period, at original discount rate		$	18,209		$	21,276
Effect of changes in cash flow assumptions		58			97
Effect of actual variances from expected experience		(14)			50
Adjusted balance		18,253			21,423
Issuances		614			146
Interest accrual		278			277
Benefit payments		(895)			(1,088)
Effect of foreign currency translation		(1,847)			(4,071)
Ending balance at original discount rate		16,403			16,687
Effect of changes in discount rate assumptions		(742)			(74)
Effect of foreign currency translation on the effect of changes in discount rate assumptions		40			(228)
Balance, end of period, at current discount rate at balance sheet date		15,701			16,385

Cumulative impact of flooring the future policyholder benefits reserve		2			30
Net liability for future policy benefits		11,404			11,982
Less: Reinsurance recoverables (Amount due to reinsurer)		(1)			—
Net liability for future policy benefits, net of reinsurance		$	11,405		$	11,982

Undiscounted:
Expected future gross premiums		$	8,911		$	8,888
Expected future benefit payments		$	26,785		$	25,565
Discounted (at current discount rate at balance sheet date):
Expected future gross premiums		$	7,582		$	7,796
Expected future benefit payments		$	15,701		$	16,385
Weighted-average duration of the liability		17 years			16 years
Weighted -average interest accretion (original locked-in) rate		2.5		%	2.4		%
Weighted-average current discount rate at balance sheet date		2.9		%	2.5		%

Significant Methodologies and Assumptions

The principal inputs used in the establishment of the FPB reserve for Asia segment’s whole and term life & endowment products include actual premiums, actual benefits, in-force data, locked-in claim-related expense, the locked-in interest accretion rate, the current upper-medium grade discount rate at the balance sheet date and best estimate assumptions. The best estimate assumptions include mortality, lapse, and morbidity.

Accident & Health

The Asia segment’s accident & health products in Japan and Korea offer various hospitalization, cancer, critical illness, disability, income protection and personal accident coverage. Information regarding these products was as follows:


	Nine Months Ended September 30,
	2023		2022
	(Dollars in millions)
Present Value of Expected Net Premiums
Balance, beginning of period, at current discount rate at balance sheet date	$	21,181	$	26,543

Balance, beginning of period, at original discount rate	$	22,594	$	25,937
Effect of changes in cash flow assumptions	867		24
Effect of actual variances from expected experience	(75)		298
Adjusted balance	23,386		26,259
Issuances	813		1,149
Interest accrual	179		192
Net premiums collected	(1,546)		(1,659)
Effect of foreign currency translation	(2,474)		(5,180)
Ending balance at original discount rate	20,358		20,761
Effect of changes in discount rate assumptions	(1,803)		(886)
Effect of foreign currency translation on the effect of changes in discount rate assumptions	136		45
Balance, end of period, at current discount rate at balance sheet date	$	18,691	$	19,920

Present Value of Expected Future Policy Benefits
Balance, beginning of period, at current discount rate at balance sheet date	$	30,879	$	41,874

Balance, beginning of period, at original discount rate	$	37,189	$	41,517
Effect of changes in cash flow assumptions	898		(7)
Effect of actual variances from expected experience	(99)		354
Adjusted balance	37,988		41,864
Issuances	812		1,150
Interest accrual	367		381
Benefit payments	(958)		(1,242)
Effect of foreign currency translation	(4,061)		(8,327)
Ending balance at original discount rate	34,148		33,826
Effect of changes in discount rate assumptions	(6,866)		(5,168)
Effect of foreign currency translation on the effect of changes in discount rate assumptions	595		535
Balance, end of period, at current discount rate at balance sheet date	27,877		29,193

Cumulative impact of flooring the future policyholder benefits reserve	143		247
Net liability for future policy benefits	9,329		9,520
Less: Reinsurance recoverables	136		16
Net liability for future policy benefits, net of reinsurance	$	9,193	$	9,504

Undiscounted:
Expected future gross premiums	$	39,891	$	39,847
Expected future benefit payments	$	44,612	$	43,770
Discounted (at current discount rate at balance sheet date):
Expected future gross premiums	$	32,286	$	34,046
Expected future benefit payments	$	27,877	$	29,193
Weighted-average duration of the liability	25 years		20 years
Weighted-average interest accretion (original locked-in) rate	1.8%		1.8%
Weighted-average current discount rate at balance sheet date	2.8%		2.4%

Significant Methodologies and Assumptions

The principal inputs used in the establishment of the FPB reserve for the Asia segment’s accident & health products include actual premiums, actual benefits, in-force data, locked-in claim-related expense, the locked-in interest accretion rate, current upper-medium grade discount rate at the balance sheet date and best estimate assumptions. The best estimate assumptions include mortality, lapse, and morbidity.

For the nine months ended September 30, 2023, the net effect of changes in cash flow assumptions was primarily driven by updates in policyholder behavior assumptions related to lapses, partially offset by updates in biometric assumptions associated with mortality and morbidity.

Latin America - Fixed Annuities

The Latin America segment’s fixed annuities products in Chile and Mexico offer fixed income annuities that provide for asset distribution needs. Information regarding these products was as follows:


	Nine Months Ended September 30,
	2023		2022
	(Dollars in millions)
Present Value of Expected Net Premiums
Balance, beginning of period, at current discount rate at balance sheet date	$	—	$	—

Balance, at beginning of period, at original discount rate	$	—	$	—
Effect of changes in cash flow assumptions (1)	—		—
Effect of actual variances from expected experience (2)	(2)		1
Adjusted balance	(2)		1
Issuances	785		551
Interest accrual	16		(3)
Net premiums collected	(799)		(549)
Ending balance at original discount rate	—		—
Balance, end of period, at current discount rate at balance sheet date	$	—	$	—

Present Value of Expected Future Policy Benefits
Balance, beginning of period, at current discount rate at balance sheet date	$	9,265	$	7,343

Balance, beginning of period, at original discount rate	$	8,240	$	6,851
Effect of changes in cash flow assumptions (1)	(5)		(11)
Effect of actual variances from expected experience (2)	(13)		(26)
Adjusted balance	8,222		6,814
Issuances	869		590
Interest accrual	258		213
Benefit payments	(504)		(422)
Inflation adjustment	273		713
Effect of foreign currency translation	(403)		(821)
Ending balance at original discount rate	8,715		7,087
Effect of changes in discount rate assumptions	(59)		394
Effect of foreign currency translation on the effect of changes in discount rate assumptions	6		(87)
Balance, end of period, at current discount rate at balance sheet date	8,662		7,394

Net liability for future policy benefits	$	8,662	$	7,394

Undiscounted - Expected future benefit payments	$	13,204	$	10,931
Discounted - Expected future benefit payments (at current discount rate at balance sheet date)	$	8,662	$	7,394
Weighted-average duration of the liability	10 years		11 years
Weighted-average interest accretion (original locked-in) rate	3.9%		4.2%
Weighted-average current discount rate at balance sheet date	3.7%		3.4%

__________________

(1) For the nine months ended September 30, 2023 and 2022, the net effect of changes in cash flow assumptions was largely offset by the corresponding impact in DPL associated with the Latin America segment’s fixed annuities products of $4 million and $10 million, respectively.

(2) For the nine months ended September 30, 2023, the net effect of actual variances from expected experience was partially offset by the corresponding impact in DPL associated with the Latin America segment’s fixed annuities products of $2 million. For the nine months ended September 30, 2022, the net effect of actual variances from expected experience was largely offset by the corresponding impact in DPL associated with the Latin America segment’s fixed annuities products of $17 million.

Significant Methodologies and Assumptions

The principal inputs used in the establishment of the FPB reserve for the Latin America segment’s fixed annuities products include actual premiums, actual benefits, in-force data, locked-in claim-related expense, the locked-in interest accretion rate, current upper-medium grade discount rate at the balance sheet date and best estimate mortality assumptions

MetLife Holdings - Long-term Care

The MetLife Holdings segment’s long-term care products offer protection against potentially high costs of long-term health care services. Information regarding these products was as follows:


	Nine Months Ended September 30,
	2023		2022
	(Dollars in millions)
Present Value of Expected Net Premiums
Balance, beginning of period, at current discount rate at balance sheet date	$	5,775	$	7,058

Balance, beginning of period, at original discount rate	$	5,807	$	5,699
Effect of changes in cash flow assumptions	(152)		272
Effect of actual variances from expected experience	173		101
Adjusted balance	5,828		6,072
Interest accrual	222		223
Net premiums collected	(438)		(434)
Ending balance at original discount rate	5,612		5,861
Effect of changes in discount rate assumptions	(258)		(142)
Balance, end of period, at current discount rate at balance sheet date	$	5,354	$	5,719

Present Value of Expected Future Policy Benefits
Balance, beginning of period, at current discount rate at balance sheet date	$	19,619	$	27,627

Balance, beginning of period, at original discount rate	$	20,165	$	19,406
Effect of changes in cash flow assumptions	(190)		301
Effect of actual variances from expected experience	194		100
Adjusted balance	20,169		19,807
Interest accrual	801		778
Benefit payments	(579)		(522)
Ending balance at original discount rate	20,391		20,063
Effect of changes in discount rate assumptions	(2,012)		(1,358)
Balance, end of period, at current discount rate at balance sheet date	18,379		18,705

Net liability for future policy benefits	$	13,025	$	12,986

Undiscounted:
Expected future gross premiums	$	10,713	$	11,335
Expected future benefit payments	$	45,152	$	46,011
Discounted (at current discount rate at balance sheet date):
Expected future gross premiums	$	6,714	$	7,126
Expected future benefit payments	$	18,379	$	18,705
Weighted-average duration of the liability	14 years		15 years
Weighted-average interest accretion (original locked-in) rate	5.5%		5.5%
Weighted-average current discount rate at balance sheet date	6.3%		6.0%

Significant Methodologies and Assumptions

The principal inputs used in the establishment of the FPB reserve for long-term care products include actual premiums, actual benefits, in-force data, locked-in claim-related expense, the locked-in interest accretion rate, current upper-medium grade discount rate at the balance sheet date and best estimate assumptions. The best estimate assumptions include mortality, lapse, incidence, claim utilization, claim cost inflation, claim continuance, and premium rate increases.

For the nine months ended September 30, 2023, the net effect of changes in cash flow assumptions was primarily driven by updates in policyholder behavior assumptions related to claim utilization experience, which lowered the expected cost of care. This was partially offset by updates in biometric assumptions associated with an increase in incidence rates. For the nine months ended September 30, 2022, the net effect of changes in cash flow assumptions was primarily driven by updates in operational assumptions related to inflation

Rollforwards - Additional Insurance Liabilities

The Company establishes additional insurance liabilities for annuitization, death or other insurance benefits for variable life, universal life, and variable universal life contract features where the Company guarantees to the contractholder either a secondary guarantee or a guaranteed paid-up benefit. The policy can remain in force, even if the base policy account value is zero, as long as contractual secondary guarantee requirements have been met.

The following information about the direct liability for additional insurance liabilities includes disaggregated rollforwards. The products grouped within these rollforwards were selected based upon common characteristics and valuations using similar inputs, judgments, assumptions and methodologies within a particular segment of the business. The adjusted balance in each disaggregated rollforward reflects the remeasurement (gains) losses.

Asia

The Asia segment’s variable life, universal life, and variable universal life products in Japan offer a contract feature where the Company guarantees to the contractholder a secondary guarantee. Information regarding these additional insurance liabilities was as follows:


	Nine Months Ended September 30,
	2023			2022			2023			2022
	Variable Life						Universal and Variable Universal Life
	(Dollars in millions)
Balance, beginning of period	$	1,381		$	1,595		$	455		$	655
Less: AOCI adjustment	—			—			(33)			56
Balance, beginning of period, before AOCI adjustment	1,381			1,595			488			599
Effect of changes in cash flow assumptions	$	(4)		$	8		$	(2)		$	(1)
Effect of actual variances from expected experience	(9)			2			(32)			(56)
Adjusted balance	1,368			1,605			454			542
Assessments accrual	(3)			(2)			—			(1)
Interest accrual	15			16			5			6
Excess benefits paid	(29)			(31)			—			—
Effect of foreign currency translation and other, net	(158)			(324)			(55)			(117)
Balance, end of period, before AOCI adjustment	1,193			1,264			404			430
Add: AOCI adjustment	—			—			(18)			(28)
Balance, end of period	$	1,193		$	1,264		$	386		$	402

Weighted-average duration of the liability	16 years			17 years			43 years			43 years
Weighted-average interest accretion rate	1.5		%	1.5		%	1.5		%	1.5		%

Significant Methodologies and Assumptions

The principal inputs used in the establishment of the additional insurance liability for the Asia segment’s variable life product include historical actual fees and benefits, in-force data, the locked-in discount rate, the stochastic fund return scenario assumption, and best estimate lapse and mortality assumptions.

The stochastic fund return scenario assumption includes the long-term average return and volatility for each fund, and the correlation matrix for each fund. For newer products, the discount rate is determined based on the weighting and return of each fund.

The principal inputs used in the establishment of the additional insurance liability for the Asia segment’s universal and variable universal life products include historical actual fees and benefits, in-force data, the locked-in discount rate, the stochastic fund return scenario assumption, and best estimate lapse and mortality assumptions.

The stochastic fund return scenario assumption includes the foreign currency exchange long-term average trend, foreign currency exchange volatility, long-term U.S. swap and treasury yield, U.S. swap volatility and the correlation between foreign currency exchange and U.S. swap rates.

The locked-in discount rate used for these products is based on the earned rate and foreign currency exchange rates at acquisition.

MetLife Holdings

The MetLife Holdings segment’s universal life and variable universal life products offer a contract feature where the Company guarantees to the contractholder a secondary guarantee or a guaranteed paid-up benefit. Information regarding these additional insurance liabilities was as follows:


	Nine Months Ended September 30,
	2023			2022
	Universal and Variable Universal Life
	(Dollars in millions)
Balance, beginning of period	$	2,156		$	2,117
Less: AOCI adjustment	(63)			67
Balance, beginning of period, before AOCI adjustment	2,219			2,050
Effect of changes in cash flow assumptions	$	38		$	35
Effect of actual variances from expected experience	(10)			27
Adjusted balance	2,247			2,112
Assessments accrual	80			77
Interest accrual	92			86
Excess benefits paid	(81)			(90)
Balance, end of period, before AOCI adjustment	2,338			2,185
Add: AOCI adjustment	(65)			(66)
Balance, end of period	2,273			2,119
Less: Reinsurance recoverables	766			741
Balance, end of period, net of reinsurance	$	1,507		$	1,378

Weighted-average duration of the liability	16 years			16 years
Weighted-average interest accretion rate	5.5		%	5.6		%

Significant Methodologies and Assumptions

Liabilities for ULSG and paid-up guarantees are determined by estimating the expected value of death benefits payable when the account balance is projected to be zero and recognizing those benefits ratably over the life of the contract based on total expected assessments.

The guaranteed benefits are estimated over a range of scenarios. The significant assumptions used in estimating the ULSG and paid-up guarantee liabilities are investment income, mortality, lapses, and premium payment pattern and persistency. In addition, projected earned rate and crediting rates are used to project the account values and excess death benefits and assessments. The discount rate is equal to the crediting rate for each annual cohort and is locked-in at inception.

The Company’s revenue and interest recognized in the interim condensed consolidated statements of operations and comprehensive income (loss) for long-duration contracts, excluding MetLife Holdings’ participating life contracts, were as follows:


		Nine Months Ended September 30,
		2023				2022
		Gross Premiums or Assessments (1)		Interest Expense (2)		Gross Premiums or Assessments (1)		Interest Expense (2)
	(In millions)
Traditional and Limited-Payment Contracts:
U.S. - Annuities		$	4,433	$	2,145	$	12,627	$	1,811
Asia:
Whole and term life & endowments		841		235		880		244
Accident & health		2,580		188		2,773		189
Latin America - Fixed annuities		799		242		549		216
MetLife Holdings - Long-term care		547		579		550		555
Deferred Profit Liabilities:
U.S. - Annuities		N/A		124		N/A		115
Asia:
Whole and term life & endowments		N/A		22		N/A		19
Accident & health		N/A		13		N/A		12
Latin America - Fixed annuities		N/A		17		N/A		15
Additional Insurance Liabilities:
Asia:
Variable life		60		15		37		16
Universal and variable universal life		(20)		5		(8)		6
MetLife Holdings - Universal and variable universal life		559		92		584		86
Other long-duration		3,194		341		2,671		339
Total		$	12,993	$	4,018	$	20,663	$	3,623

__________________

(1)Gross premiums are related to traditional and limited-payment contracts and are included in premiums. Assessments are related to additional insurance liabilities and are included in universal life and investment-type product policy fees and net investment income.

(2)Interest expense is included in policyholder benefits and claims.

Liabilities for Unpaid Claims and Claim Expenses

Rollforward of Claims and Claim Adjustment Expenses

Information regarding the liabilities for unpaid claims and claim adjustment expenses was as follows:


	Nine Months Ended September 30,
	2023		2022
	(In millions)
Balance, beginning of period	$	16,098	$	15,598
Less: Reinsurance recoverables	2,452		2,629
Net balance, beginning of period	13,646		12,969
Incurred related to:
Current period	19,983		19,391
Prior periods (1)	327		689
Total incurred	20,310		20,080
Paid related to:
Current period	(13,991)		(13,641)
Prior periods	(5,883)		(5,593)
Total paid	(19,874)		(19,234)


Net balance, end of period	14,082		13,815
Add: Reinsurance recoverables	2,523		2,398
Balance, end of period (included in future policy benefits and other policy-related balances)	$	16,605	$	16,213

__________________

(1)For the nine months ended September 30, 2023, incurred claims and claim adjustment expenses associated with prior periods increased due to events incurred in prior periods but reported in the current period. For the nine months ended September 30, 2022, incurred claims and claim adjustment expenses include expenses associated with prior periods but reported in the 2022 period, which contain impacts related to the COVID-19 pandemic, partially offset by additional premiums recorded for experience-rated contracts that are not reflected in the table above.