Reinsurance

12 Months Ended

Dec. 31, 2024

The Company reinsures its business through a diversified group of reinsurers. However, the Company remains liable to the extent its reinsurers do not meet their obligations under the reinsurance agreements. Collectability of reinsurance balances are evaluated by monitoring ratings and evaluating the financial strength of its reinsurers. Large reinsurance recoverable balances with offshore or other non-accredited reinsurers are secured through various forms of collateral, including secured trusts, funds withheld accounts and irrevocable letters of credit ("LOC").

Information regarding the effect of reinsurance on the Consolidated Balance Sheets is as follows as of the periods indicated:


	December 31, 2024
	Direct		Assumed		Ceded		Total, Net of Reinsurance
Assets
Premium receivable	$	205	$	10	$	(238)	$	(23)
Reinsurance recoverable, net of allowance for credit losses	—		—		11,307		11,307
Total	$	205	$	10	$	11,069	$	11,284

Liabilities
Future policy benefits and contract owner account balances	$	45,540	$	896	$	—	$	46,436
Liability for funds withheld under reinsurance agreements	103		—		—		103
Total	$	45,643	$	896	$	—	$	46,539



	December 31, 2023
	Direct		Assumed		Ceded		Total, Net of Reinsurance
Assets
Premium receivable	$	193	$	9	$	(219)	$	(17)
Reinsurance recoverable, net of allowance for credit losses	—		—		11,999		11,999
Total	$	193	$	9	$	11,780	$	11,982

Liabilities
Future policy benefits and contract owner account balances	$	47,781	$	953	$	—	$	48,734
Liability for funds withheld under reinsurance agreements	103		—		—		103
Total	$	47,884	$	953	$	—	$	48,837

Information regarding the effect of reinsurance on the Consolidated Statements of Operations is as follows for the periods indicated:


	Year Ended December 31,
	2024		2023		2022
Premiums:
Direct premiums	$	4,084	$	3,599	$	3,257
Reinsurance assumed	21		26		25
Reinsurance ceded	(929)		(908)		(859)
Net premiums	$	3,176	$	2,717	$	2,423

Fee income:
Gross fee income	$	2,494	$	2,303	$	2,137
Reinsurance assumed	16		17		18
Reinsurance ceded	(397)		(404)		(413)
Net fee income	$	2,113	$	1,916	$	1,742

Interest credited and other benefits to contract owners / policyholders:
Direct interest credited and other benefits to contract owners / policyholders	$	4,931	$	4,322	$	4,448
Reinsurance assumed	60		64		50
Reinsurance ceded	(1,372)		(1,350)		(1,970)
Net interest credited and other benefits to contract owners / policyholders	$	3,619	$	3,036	$	2,528

The Company has indemnity reinsurance agreements with Security Life of Denver Company ("SLD") and with a subsidiary of Lincoln National Corporation ("Lincoln"). Under these agreements, SLD and Lincoln contractually assumed certain policyholder liabilities and obligations, although the Company remains obligated to contract owners. Reinsurance recoverable, net of the allowance for credit losses, related to the agreement with SLD was $8.6 billion and $9.2 billion as of December 31, 2024 and 2023, respectively, on the Consolidated Balance Sheets. Reinsurance recoverable, net of the allowance for credit losses, related to the reinsurance agreement with Lincoln was $0.9 billion and $1.0 billion as of December 31, 2024 and 2023, respectively, on the Consolidated Balance Sheets.

If the Company determines that a reinsurance agreement does not expose the reinsurer to a reasonable possibility of a significant loss from insurance risk, the Company records the agreement using the deposit method of accounting. As of December 31, 2024 and 2023, the Company had a deposit asset, net of the allowance for credit losses, of $1.1 billion and $1.2 billion, respectively, which is reported in Other assets on the Consolidated Balance Sheets.