Reserves for Future Policy Benefits (Tables)

12 Months Ended

Dec. 31, 2023

Policyholder Account Balance And Liability For Unpaid Claims And Claims Adjustment Expense

The following table summarizes the Company’s reserve for future policy benefits recognized on the consolidated balance sheets:


	As of December 31,
	2023		2022
Life-contingent payout annuities [1]	$	8,674	$	8,560
Additional liabilities for other insurance benefits	6,787		6,253
Deferred profit liability	119		37
Negative VOBA [2]	2,512		2,645
Other reserves [3]	1,287		1,243
Reserve for future policy benefits	$	19,379	$	18,738

[1]See “Liability for Future Policy Benefits” section below for further information.

[2]Refer to Note 7 - Value of Business Acquired, Deferred Acquisition Costs, Unearned Revenue Reserves, and Other Balances for additional details related to negative VOBA.

[3]Represents reserves for fully reinsured traditional life insurance of $0.8 billion December 31, 2023 and 2022, as well as COLI, other universal life-type products, and short-duration contracts, which are all excluded from the tables below.

Liability for Future Policy Benefit, Activity

The following table presents the Successor Company rollforward of life-contingent payout annuities from the acquired balance measured before adoption, to the opening balance as of the adoption date:


Balance as of July 1, 2021	$	14,613
Change in discount rate assumptions	(2,280)
Change in cash flow assumptions and other activity	(554)
Adjusted balance as of July 1, 2021	$	11,779

Less: reinsurance recoverables	(2,938)
Adjusted balance as of July 1, 2021, net of reinsurance	$	8,841

The following table presents a rollforward of MRB liabilities associated with VA, from the acquired balance measured before adoption, to the opening balance as of the adoption date:


Balance as of July 1, 2021	$	—
Addition of existing balances [1]	261
Fair value adjustments	399
Adjusted balance as of July 1, 2021	$	660

Less: ceded market risk benefits [2]	(776)
Adjusted balance as of July 1, 2021, net of reinsurance	$	(116)

[1]Associated reserves were previously recorded within reserve for future policy benefits and other policyholder funds and benefits payable on the balance sheets.

[2]Included within reinsurance recoverables on the balance sheets.

The Company’s LFPBs consists only of the liability associated with limited pay annuities (e.g., single premium immediate annuities) with life contingencies. As this business has no future expected premiums, the following table presents a rollforward of the present value of expected future policy benefits for life-contingent payout annuities:


	Year Ended December 31,
	2023		2022
Beginning balance	$	8,335	$	11,617
Beginning balance at original discount rate	11,048		11,571
Effect of actual variances from expected experience due to mortality	(17)		2
Effect of changes in cash flow assumptions	(90)		(23)
Adjusted beginning balance at original discount rate	10,941		11,550

Issuances [1]	147		138
Interest accrual [2]	127		62
Benefit payments	(697)		(702)


Ending balance at original discount rate	10,518		11,048

Cumulative effect of changes in discount rate assumptions	(2,059)		(2,713)
Ending balance	8,459		8,335

Other business [3]	215		225
Adjusted ending balance	8,674		8,560

Less: reinsurance recoverables	(5,083)		(4,992)
Adjusted ending balance, net of reinsurance	$	3,591	$	3,568

[1]Issuances are included within premiums in the statements of operations.

[2]Interest accretion (expense) is recorded as a component of benefits and losses in the statements of operations.

[3]Represents fully reinsured blocks, whose activity is not included in the table above.

The following is a reconciliation of premiums to the statements of operations:


	Year Ended December 31,
	2023		2022
Life-contingent payout annuities	$	147	$	138
Reconciling items [1]	(59)		(39)
Total premiums	$	88	$	99

[1]Reconciling items represent premiums related to fully reinsured traditional life insurance and other lines of business, net of reinsured premiums.

The following presents supplemental disclosures related to the present value of expected future policy benefits for life-contingent payout annuities:


	Year Ended December 31,
	2023			2022
Undiscounted expected future benefits and expenses	$	18,127		$	18,696

Weighted-average duration of the liability (in years)	11.9			11.7
Weighted-average interest accretion rate	1.3		%	0.6		%
Weighted-average discount rate	4.9		%	5.3		%