Future Contract Benefits (Tables)

3 Months Ended

Mar. 31, 2024

Liability for Future Policy Benefits and Unpaid Claims and Claims Adjustment Expense [Abstract]

Summary of Reconciliation of Future Contract Benefits

The following table reconciles future contract benefits (in millions) to the Consolidated Balance Sheets:

	As of March 31,		As of December 31,
	2024		2023
Payout Annuities (1)	$	2,034	$	2,085
Traditional Life (1)	3,793		3,841
Group Protection (2)	5,640		5,689
UL and Other (3)	14,444		15,000
Other Operations (4)	9,615		9,879
Other (5)	3,322		3,371
Total future contract benefits	$	38,848	$	39,864

(1) See liability for future policy benefits (“LFPB”) below for further information.

(2) See “Liability for Future Claims” below for further information.

(3) See “Additional Liabilities for Other Insurance Benefits” below for further information.

(4) Represents future contract benefits reported in Other Operations primarily attributable to the indemnity reinsurance agreements with Protective ($5.5 billion and $5.6 billion as of March 31, 2024, and December 31, 2023, respectively) and Swiss Re ($2.2 billion as of March 31, 2024, and December 31, 2023) that are excluded from the following tables.

(5) Represents other miscellaneous reserves that are not representative of long-duration contracts and are excluded from the following tables.

Liability for Future Policy Benefit, Activity

The following table summarizes the balances of and changes in the present values of expected net premiums and LFPB (in millions, except years):

	As of or For the Three Months Ended March 31, 2024				As of or For the Three Months Ended March 31, 2023
	Payout Annuities		Traditional Life		Payout Annuities		Traditional Life
Present Value of Expected Net Premiums
Balance as of beginning-of-year	$	–	$	6,200	$	–	$	6,063
Less: Effect of cumulative changes in discount
rate assumptions	–		(148)		–		(582)
Beginning balance at original discount rate	–		6,348		–		6,645
Effect of actual variances from expected experience	–		2		–		(241)
Adjusted balance as of beginning-of-year	–		6,350		–		6,404
Issuances	–		108		–		176
Interest accrual	–		63		–		60
Net premiums collected	–		(202)		–		(203)
Flooring impact of LFPB	–		3		–		2
Ending balance at original discount rate	–		6,322		–		6,439
Effect of cumulative changes in discount
rate assumptions	–		(254)		–		(230)
Balance as of end-of-period	$	–	$	6,068	$	–	$	6,209
Present Value of Expected LFPB
Balance as of beginning-of-year	$	2,085	$	10,041	$	2,004	$	9,572
Less: Effect of cumulative changes in discount
rate assumptions	(187)		(189)		(263)		(785)
Beginning balance at original discount rate (1)	2,272		10,230		2,267		10,357
Effect of actual variances from expected experience	1		7		(1)		(251)
Adjusted balance as of beginning-of-year	2,273		10,237		2,266		10,106
Issuances	15		108		27		177
Interest accrual	22		100		21		95
Benefit payments	(49)		(206)		(46)		(186)
Ending balance at original discount rate (1)	2,261		10,239		2,268		10,192
Effect of cumulative changes in discount
rate assumptions	(227)		(378)		(200)		(302)
Balance as of end-of-period	$	2,034	$	9,861	$	2,068	$	9,890
Net balance as of end-of-period	$	2,034	$	3,793	$	2,068	$	3,681
Less: reinsurance recoverables	1,562		421		3		520
Net balance as of end-of-period, net of reinsurance	$	472	$	3,372	$	2,065	$	3,161
Weighted-average duration of future policyholder
benefit liability (years)	9		9		9		10

(1) Includes deferred profit liability within Payout Annuities of $60 million and $43 million as of March 31, 2024 and 2023, respectively.

The following table summarizes the balances of and changes in liability for future claims (in millions, except years):

	Group Protection
	As of or For the Three Months Ended March 31,
	2024		2023
Balance as of beginning-of-year	$	5,689	$	5,462
Less: Effect of cumulative changes in discount
rate assumptions	(490)		(597)
Beginning balance at original discount rate	6,179		6,059
Effect of actual variances from expected experience	(67)		(100)
Adjusted beginning-of-year balance	6,112		5,959
New incidence	408		437
Interest	48		42
Benefit payments	(382)		(377)
Ending balance at original discount rate	6,186		6,061
Effect of cumulative changes in discount
rate assumptions	(546)		(569)
Balance as of end-of-period	5,640		5,492
Less: reinsurance recoverables	123		126
Balance as of end-of-period, net of reinsurance	$	5,517	$	5,366
Weighted-average duration of liability for future
claims (years)	5		4

The following table summarizes the balances of and changes in additional liabilities for other insurance benefits (in millions, except years):

	UL and Other
	As of or For the Three Months Ended March 31,
	2024		2023
Balance as of beginning-of-year	$	15,000	$	14,818
Less: Effect of cumulative changes in shadow
balance in AOCI	(2,222)		(905)
Balance as of beginning-of-year, excluding
shadow balance in AOCI	17,222		15,723
Effect of actual variances from expected experience	106		(9)
Adjusted beginning-of-year balance	17,328		15,714
Interest accrual	209		186
Net assessments collected	303		336
Benefit payments	(313)		(183)
Balance as of end-of-period, excluding shadow
balance in AOCI	17,527		16,053
Effect of cumulative changes in shadow
balance in AOCI	(3,083)		(669)
Balance as of end-of-period	14,444		15,384
Less: reinsurance recoverables (1)	4,776		862
Balance as of end-of-period, net of reinsurance	$	9,668	$	14,522
Weighted-average duration of additional liabilities
for other insurance benefits (years)	17		17

(1) Increase in reinsurance recoverables driven by the reinsurance agreement with Fortitude Re effective October 1, 2023 for certain blocks of in-force ULSG. See Note 7 for more information on the transaction.

Summary of Discounted and Undiscounted Expected Future Gross premiums and Expected Future Benefit Payments

The following table summarizes the discounted and undiscounted expected future gross premiums and expected future benefit payments (in millions):

	As of March 31, 2024				As of March 31, 2023
	Undiscounted		Discounted		Undiscounted		Discounted
Payout Annuities
Expected future gross premiums	$	–	$	–	$	–	$	–
Expected future benefit payments	3,438		2,034		3,461		2,068
Traditional Life
Expected future gross premiums	13,896		9,570		14,005		9,750
Expected future benefit payments	14,582		9,861		14,485		9,890

The following table summarizes the discounted and undiscounted expected future benefit payments (in millions):

	As of March 31, 2024				As of March 31, 2023
	Undiscounted		Discounted		Undiscounted		Discounted
Group Protection
Expected future benefit payments	$	7,296	$	5,640	$	7,086	$	5,492

Summary of Gross Premiums and Interest Accretion

The following table summarizes the gross premiums and interest accretion (in millions) recognized in insurance premiums and benefits, respectively, on the Consolidated Statements of Comprehensive Income (Loss):

	For the Three Months Ended March 31,
	2024		2023
Payout Annuities
Gross premiums	$	21	$	28
Interest accretion	22		21
Traditional Life
Gross premiums	314		313
Interest accretion	37		35

The following table summarizes the gross premiums and interest accretion (in millions) recognized in insurance premiums and benefits, respectively, on the Consolidated Statements of Comprehensive Income (Loss):

	For the Three Months Ended March 31,
	2024		2023
Group Protection
Gross premiums	$	896	$	885
Interest accretion	48		42

The following table summarizes the gross assessments and interest accretion (in millions) recognized in insurance premiums and benefits, respectively, on the Consolidated Statements of Comprehensive Income (Loss):

	For the Three Months Ended March 31,
	2024		2023
UL and Other
Gross assessments	$	766	$	915
Interest accretion	209		186

Summary of Weighted-Average Interest Rates

The following table summarizes the weighted-average interest rates:

	For the Three Months Ended March 31,
	2024		2023
Payout Annuities
Interest accretion rate	3.9	%	3.9	%
Current discount rate	5.2	%	4.9	%
Traditional Life
Interest accretion rate	5.0	%	5.1	%
Current discount rate	5.0	%	4.8	%

The following table summarizes the weighted-average interest rates:

	For the Three Months Ended March 31,
	2024		2023
Group Protection
Interest accretion rate	3.2	%	2.9	%
Current discount rate	5.0	%	4.8	%

The following table summarizes the weighted-average interest rates:

	For the Three Months Ended March 31,
	2024		2023
UL and Other
Interest accretion rate	5.3	%	5.0	%