Future Policy Benefits Reserves (Tables)

9 Months Ended

Sep. 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)	28		352
Effect of actual variances from expected experience (a)	(112)		(40)
Adjusted balance, January 1	3,835		4,167
Interest accrual	153		161
Net premiums: earned during period	(332)		(341)
Balance, end of period at original locked in discount rate	3,656		3,987
Effect of changes in discount rate	(67)		40
Balance, September 30	$	3,589	$	4,027

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)	36		538
Effect of actual variances from expected experience (a)	(45)		(21)
Adjusted balance, January 1	17,338		17,320
Interest accrual	723		730
Benefit & expense payments	(945)		(708)
Balance, end of period at original locked in discount rate	17,116		17,342
Effect of changes in discount rate	(873)		(134)
Balance, September 30	$	16,243	$	17,208


Net LFPB, September 30	$	12,654	$	13,181


(a)			As of September 30, 2023 and 2022, the re-measurement loss of $(75) million and $(205) 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				Nine Months Ended
	September 30,				September 30,
	2023		2022		2023		2022

(In millions)

Earned premiums	$	112	$	118	$	340	$	356
Interest expense	191		192		570		569

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


	September 30,
	2023		2022
(In millions)

Expected future benefit and expense payments	$	33,217	$	34,496
Expected future gross premiums	5,557		6,034

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


	September 30,				December 31,
	2023		2022		2022


Original locked in discount rate	5.24	%	5.28	%	5.27	%
Upper-medium grade fixed income instrument discount rate	5.78		5.39		5.23