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INSURANCE LIABILITIES AND ANNUITY BENEFITS
 3 Months Ended
Mar. 31, 2024
Insurance [Abstract]  
INSURANCE LIABILITIES AND ANNUITY BENEFITS
NOTE 13. INSURANCE LIABILITIES AND ANNUITY BENEFITS. Insurance liabilities and annuity benefits comprise substantially all obligations to annuitants and insureds in our run-off insurance operations. Our insurance operations (net of eliminations) generated revenues of $879 million and $791 million, profit was $200 million and $70 million and net earnings was $158 million and $54 million for the three months ended March 31, 2024 and 2023, respectively. These operations were primarily supported by investment securities of $38,304 million and $37,592 million, limited partnerships of $3,498 million and $3,300 million, and a diversified commercial mortgage loan portfolio substantially all collateralized by first liens on U.S. commercial real estate properties of $1,924 million and $1,947 million (net of allowance for credit losses of $61 million and $48 million), as of March 31, 2024 and December 31, 2023, respectively. As of March 31, 2024, the commercial mortgage loan portfolio had 4 delinquent loans, 1 non-accrual loan and about one-third of the portfolio was held in the office sector, which had a weighted average loan-to-value ratio of 70%, debt service coverage of 1.6, and no scheduled maturities through 2025. A summary of our insurance liabilities and annuity benefits is presented below:

March 31, 2024
Long-term careStructured settlement annuitiesLifeOther contractsTotal
Future policy benefit reserves
$25,722 $8,909 $1,054 $375 $36,059 
Investment contracts
— 776 — 710 1,486 
Other
— — 112277 389 
Total
$25,722 $9,685 $1,166 $1,361 $37,934 
December 31, 2023
Future policy benefit reserves
$26,832 $9,357 $1,117 $382 $37,689 
Investment contracts
— 793 — 742 1,535 
Other
— — 116 285 400 
Total
$26,832 $10,150 $1,233 $1,409 $39,624 
The following tables summarize balances of and changes in future policy benefits reserves.

March 31, 2024March 31, 2023
Present value of expected net premiumsLong-term careStructured settlement annuitiesLifeLong-term careStructured settlement annuitiesLife
Balance, beginning of year$4,063 $— $4,803 $4,059 $— $4,828 
Beginning balance at locked-in discount rate3,745 — 4,773 3,958 — 5,210 
Effect of changes in cash flow assumptions17 — — — — — 
Effect of actual variances from expected experience6 — (2)29 — (35)
Adjusted beginning of year balance3,769 — 4,771 3,987 — 5,175 
Interest accrual 51 — 45 53 — 50 
Net premiums collected(98)— (70)(103)— (73)
Effect of foreign currency— — (69)— — (23)
Ending balance at locked-in discount rate3,721 — 4,678 3,936 — 5,129 
Effect of changes in discount rate assumptions211 — (151)281 — (149)
Balance, end of period$3,932 $— $4,527 $4,217 $— $4,979 
Present value of expected future policy benefits
Balance, beginning of year$30,895 $9,357 $5,921 $28,316 $8,860 $5,868 
Beginning balance at locked-in discount rate27,144 8,561 5,847 27,026 8,790 6,247 
Effect of changes in cash flow assumptions(7)— — (11)— — 
Effect of actual variances from expected experience43 (29)(13)30 (1)2 
Adjusted beginning of year balance27,180 8,532 5,833 27,046 8,789 6,250 
Interest accrual368 111 55 363 115 60 
Benefit payments(359)(159)(109)(309)(174)(138)
Effect of foreign currency— — (73)— — (24)
Ending balance at locked-in discount rate27,190 8,484 5,707 27,100 8,730 6,148 
Effect of changes in discount rate assumptions2,465 425 (126)3,171 619 (123)
Balance, end of period$29,654 $8,909 $5,581 $30,271 $9,349 $6,025 
Net future policy benefit reserves$25,722 $8,909 $1,054 $26,054 $9,349 $1,045 
Less: Reinsurance recoverables, net of allowance for credit losses(165)— (29)(204)— (57)
Net future policy benefit reserves, after reinsurance recoverables$25,557 $8,909 $1,025 $25,850 $9,349 $988 

The Statement of Earnings (Loss) for the three months ended March 31, 2024 and 2023 included gross premiums or assessments of $207 million and $214 million and interest accretion of $439 million and $435 million, respectively. For the three months ended March 31, 2024 and 2023, gross premiums or assessments were substantially all related to long-term care of $123 million and $124 million and life of $79 million and $84 million, while interest accretion was substantially all related to long-term care of $318 million and $310 million and structured settlement annuities of $111 million and $115 million, respectively.

The following table provides the amount of undiscounted and discounted expected future gross premiums and expected future benefits and expenses for nonparticipating traditional contracts.

March 31, 2024March 31, 2023
Undiscounted
Discounted(a)
UndiscountedDiscounted(a)
Long-term care:
Gross premiums
$7,376 $4,794 $7,924 $5,105 
Benefit payments62,774 29,654 64,944 30,271 
Structured settlement annuities:Benefit payments19,092 8,909 19,745 9,349 
Life: Gross premiums12,082 5,446 13,537 6,104 
Benefit payments10,935 5,581 11,800 6,025 
(a) Determined using the current discount rate as of March 31, 2024 and 2023, respectively.
The following table provides the weighted-average durations of and weighted-average interest rates for the liability for future policy benefits.
March 31, 2024March 31, 2023
Long-term careStructured settlement annuitiesLifeLong-term careStructured settlement annuitiesLife
Duration (years)(a)
12.410.85.313.211.25.3
Interest accretion rate5.6%5.4%5.2%5.5%5.4%5.1%
Current discount rate5.2%5.2%5.0%5.0%5.0%4.8%
(a) Determined using the current discount rate as of March 31, 2024 and 2023.

As of March 31, 2024 and 2023, policyholders account balances totaled $1,686 million and $1,921 million, respectively. As our insurance operations are in run-off, changes in policyholder account balances for the three months ended March 31, 2024 and 2023 are primarily attributed to surrenders, withdrawals, and benefit payments of $106 million and $120 million, partially offset by net additions from separate accounts and interest credited of $66 million and $75 million, respectively. Interest on policyholder account balances is generally credited at minimum guaranteed rates, primarily between 3.0% and 6.0% at both March 31, 2024 and 2023.

Following approval of a statutory permitted accounting practice in 2018 by our primary regulator, the Kansas Insurance Department, we have since provided a total of $15,035 million of capital contributions to our run-off insurance subsidiaries, including the final contribution of $1,820 million in the first quarter of 2024.

See Notes 3 and 10 for further information related to our run-off insurance operations.