Future Policy Benefits Reserves (Tables)

6 Months Ended

Jun. 30, 2023

Schedule of Liability for Future Policy Benefit

The following table summarizes balances and changes in the LFPB.


	2023		2022
(In millions)

Present value of future net premiums
Balance, January 1	$	3,993	$	4,735
Effect of changes in discount rate	(74)		(880)
Balance, January 1, at original locked in discount rate	3,919		3,855
Effect of changes in cash flow assumptions (a)
Effect of actual variances from expected experience (a)	(85)		(37)
Adjusted balance, January 1	3,834		3,818
Interest accrual	103		105
Net premiums: earned during period	(225)		(225)
Balance, end of period at original locked in discount rate	3,712		3,698
Effect of changes in discount rate	78		246
Balance, June 30	$	3,790	$	3,944

Present value of future benefits & expenses
Balance, January 1	$	17,472	$	22,745
Effect of changes in discount rate	(125)		(5,942)
Balance, January 1, at original locked in discount rate	17,347		16,803
Effect of changes in cash flow assumptions (a)
Effect of actual variances from expected experience (a)	(51)		(43)
Adjusted balance, January 1	17,296		16,760
Interest accrual	482		482
Benefit & expense payments	(629)		(470)
Balance, end of period at original locked in discount rate	17,149		16,772
Effect of changes in discount rate	307		1,329
Balance, June 30	$	17,456	$	18,101


Net LFPB	$	13,666	$	14,157


(a)			As of June 30, 2023 and 2022, the re-measurement gain (loss) of $(34) million and $6 million presented parenthetically on the Consolidated Condensed Statement of Operations is comprised of the effect of changes in cash flow assumptions and the effect of actual variances from expected experience.

The following table presents earned premiums and interest expense associated with the long term care business recognized on the Condensed Consolidated Statement of Operations.


	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2023		2022		2023		2022

(In millions)

Earned premiums	$	113	$	118	$	228	$	238
Interest expense	189		189		379		377

The following table presents undiscounted expected future benefit and expense payments and undiscounted expected future gross premiums.


	June 30,
	2023		2022
(In millions)

Expected future benefit and expense payments	$	33,287	$	33,429
Expected future gross premiums	5,536		5,848

The weighted average interest rates in the table below are calculated based on the rate used to discount all future cash flows.


	June 30,				December 31,
	2023		2022		2022


Original locked in discount rate	5.25	%	5.29	%	5.27	%
Upper-medium grade fixed income instrument discount rate	5.10		4.64		5.23