Insurance Liabilities (Tables)

3 Months Ended

Mar. 31, 2024

Schedule of Liability for Future Policy Benefits, by Product Segment

Information regarding liability for future policy benefits (“LFPB”) for non-participating traditional and limited-payment contracts was as follows:


	Three Months Ended March 31,
	2024									2023
	Term and Whole Life Insurance			Income Annuities			Structured Settlement and Pension Risk Transfer Annuities			Term and Whole Life Insurance			Income Annuities			Structured Settlement and Pension Risk Transfer Annuities
	(Dollars in millions)
Present value of expected net premiums:
Balance, beginning of period	$	2,899		$	—		$	—		$	2,804		$	—		$	—
Beginning balance at original discount rate	3,162			—			—			3,146			—			—
Effect of model refinements	1			—			—			—			—			—

Effect of actual variances from expected experience	(7)			—			—			(6)			—			—
Adjusted beginning of period balance	3,156			—			—			3,140			—			—
Issuances	24			—			—			24			—			—
Interest accrual	28			—			—			27			—			—
Net premiums collected	(91)			—			—			(89)			—			—
Ending balance at original discount rate	3,117			—			—			3,102			—			—
Effect of changes in discount rate assumptions	(309)			—			—			(273)			—			—
Balance, end of period	$	2,808		$	—		$	—		$	2,829		$	—		$	—
Present value of expected future policy benefits:
Balance, beginning of period	$	5,385		$	3,719		$	6,697		$	5,172		$	3,469		$	6,793
Beginning balance at original discount rate	5,905			3,993			7,085			5,816			3,848			7,410
Effect of model refinements	1			—			—			—			—			—

Effect of actual variances from expected experience	(5)			4			(2)			(6)			(18)			(31)
Adjusted beginning of period balance	5,901			3,997			7,083			5,810			3,830			7,379
Issuances	25			98			—			25			77			—
Interest accrual	54			38			77			53			36			79
Benefit payments	(146)			(103)			(147)			(129)			(89)			(145)
Ending balance at original discount rate	5,834			4,030			7,013			5,759			3,854			7,313
Effect of changes in discount rate assumptions	(621)			(347)			(576)			(505)			(282)			(385)
Balance, end of period	$	5,213		$	3,683		$	6,437		$	5,254		$	3,572		$	6,928
Net liability for future policy benefits, end of period	$	2,405		$	3,683		$	6,437		$	2,425		$	3,572		$	6,928
Less: Reinsurance recoverable, end of period	23			31			62			31			27			69
Net liability for future policy benefits, after reinsurance recoverable	$	2,382		$	3,652		$	6,375		$	2,394		$	3,545		$	6,859
Weighted-average duration of liability	8.8 years			8.2 years			11.6 years			8.4 years			8.4 years			11.6 years
Weighted-average interest accretion rate	3.91		%	4.00		%	4.46		%	3.93		%	3.88		%	4.46		%
Current discount rate	5.24		%	5.24		%	5.32		%	4.90		%	4.92		%	5.00		%
Gross premiums or assessments recognized during period	$	139		$	121		$	—		$	150		$	95		$	—
Expected future gross premiums, undiscounted	$	5,889		$	—		$	—		$	6,426		$	—		$	—
Expected future gross premiums, discounted	$	4,449		$	—		$	—		$	4,793		$	—		$	—
Expected future benefit payments, undiscounted	$	8,055		$	5,669		$	13,622		$	7,937		$	5,292		$	14,224
Expected future benefit payments, discounted	$	5,834		$	4,030		$	7,013		$	5,759		$	3,854		$	7,313

Information regarding the additional insurance liabilities for universal life-type contracts with secondary guarantees was as follows:


	Three Months Ended March 31,
	2024			2023
	(Dollars in millions)
Balance, beginning of period	$	7,607		$	6,935
Beginning balance before the effect of unrealized gains and losses	7,784			7,175

Effect of actual variances from expected experience	40			34
Adjusted beginning of period balance	7,824			7,209
Interest accrual	94			87
Net assessments collected	103			101
Benefit payments	(115)			(103)

Ending balance before the effect of unrealized gains and losses	7,906			7,294
Effect of unrealized gains and losses	(220)			(171)
Balance, end of period	7,686			7,123
Less: Reinsurance recoverable, end of period	1,447			1,397
Net additional liability, after reinsurance recoverable	$	6,239		$	5,726
Weighted-average duration of liability	6.7 years			6.7 years
Weighted-average interest accretion rate	4.93		%	4.91		%
Gross assessments recognized during period	$	254		$	256

A reconciliation of the net LFPBs for nonparticipating traditional and limited-payment contracts and the additional insurance liabilities for universal life-type contracts with secondary guarantees reported in the preceding rollforward tables to LFPBs on the consolidated balance sheets was as follows at:


	March 31,
	2024		2023
	(In millions)
Liabilities reported in the preceding rollforward tables	$	20,211	$	20,048
Long-term care insurance (1)	5,375		5,763
ULSG liabilities, including liability for profits followed by losses	2,591		2,654
Participating whole life insurance (2)	2,875		2,729
Deferred profit liabilities	476		369
Other	342		407
Total liability for future policy benefits	$	31,870	$	31,970

_______________

(1)Includes liabilities related to fully reinsured individual long-term care insurance. See Note 2.

(2)Participating whole life insurance uses an interest assumption based on the non-forfeiture interest rate, ranging from 3.5% to 4.0%, and mortality rates guaranteed in calculating the cash surrender values described in such contracts, and also includes a liability for terminal dividends. Participating whole life insurance represented 3% of the Company’s life insurance in-force at both March 31, 2024 and 2023, and 40% and 42% of gross traditional life insurance premiums for the three months ended March 31, 2024 and 2023, respectively.

Policyholder Account Balance

Information regarding policyholder account balances was as follows:


	Universal Life Insurance			Variable Annuities (1)			Index-linked Annuities			Fixed Rate Annuities			ULSG			Company-Owned Life Insurance (1)
	(Dollars in millions)
Three Months Ended March 31, 2024
Balance, beginning of period	$	1,980		$	4,111		$	41,627		$	14,672		$	5,052		$	653
Premiums and deposits	56			19			2,052			637			162			—
Surrenders and withdrawals	(12)			(172)			(1,274)			(441)			(4)			—
Benefit payments	(15)			(24)			(77)			(84)			(17)			(3)
Net transfers from (to) separate account	10			28			—			—			—			200
Interest credited	20			25			138			139			40			8
Policy charges	(49)			(5)			(4)			—			(249)			(2)
Changes related to embedded derivatives	—			—			1,888			—			—			—

Balance, end of period	$	1,990		$	3,982		$	44,350		$	14,923		$	4,984		$	856
Weighted-average crediting rate (2)	1.01		%	0.62		%	0.41		%	0.94		%	0.80		%	1.06		%
Three Months Ended March 31, 2023
Balance, beginning of period	$	2,100		$	4,664		$	33,896		$	14,274		$	5,307		$	641
Premiums and deposits	49			27			1,677			912			171			—
Surrenders and withdrawals	(61)			(163)			(785)			(506)			(6)			—
Benefit payments	(23)			(31)			(50)			(102)			(38)			(2)
Net transfers from (to) separate account	3			9			—			—			—			—
Interest credited	16			39			96			106			43			7
Policy charges	(51)			(6)			(2)			—			(258)			(2)
Changes related to embedded derivatives	—			—			1,090			—			—			—

Balance, end of period	$	2,033		$	4,539		$	35,922		$	14,684		$	5,219		$	644
Weighted-average crediting rate (2)	0.77		%	0.85		%	0.32		%	0.73		%	0.82		%	1.09		%

_______________

(1)Includes liabilities related to separate account products where the contract holder elected a general account investment option.

(2)Excludes the effects of embedded derivatives related to index-linked crediting rates.

A reconciliation of policyholder account balances reported in the preceding rollforward table to the liability for policyholder account balances on the consolidated balance sheets was as follows at:


	March 31,
	2024		2023
	(In millions)
Policyholder account balances reported in the preceding rollforward table	$	71,085	$	63,041
Funding agreements classified as investment contracts	11,245		11,151
Other investment contract liabilities	964		1,017
Total policyholder account balances	$	83,294	$	75,209

Policyholder Account Balance, Guaranteed Minimum Crediting Rate

The balance of account values by range of guaranteed minimum crediting rates and the related range of difference, in basis points, between rates being credited to policyholders and the respective guaranteed minimums was as follows at:


Range of Guaranteed Minimum Crediting Rate	At Guaranteed Minimum		1 to 50 Basis Points Above		51 to 150 Basis Points Above		Greater than 150 Basis Points Above		Total
	(In millions)
March 31, 2024
Annuities (1):
Less than 2.00%	$	604	$	154	$	284	$	8,257	$	9,299
2.00% to 3.99%	7,707		255		150		421		8,533
Greater than 3.99%	852		—		—		—		852
Total	$	9,163	$	409	$	434	$	8,678	$	18,684
Life insurance (2) (3):
Less than 2.00%	$	—	$	—	$	—	$	251	$	251
2.00% to 3.99%	—		449		49		131		629
Greater than 3.99%	1,060		—		—		—		1,060
Total	$	1,060	$	449	$	49	$	382	$	1,940
ULSG (3):
Less than 2.00%	$	—	$	—	$	—	$	—	$	—
2.00% to 3.99%	1,113		1,463		1,648		250		4,474
Greater than 3.99%	501		—		—		—		501
Total	$	1,614	$	1,463	$	1,648	$	250	$	4,975
December 31, 2023
Annuities (1):
Less than 2.00%	$	645	$	204	$	301	$	7,632	$	8,782
2.00% to 3.99%	8,125		233		201		307		8,866
Greater than 3.99%	872		—		—		—		872
Total	$	9,642	$	437	$	502	$	7,939	$	18,520
Life insurance (2) (3):
Less than 2.00%	$	—	$	—	$	—	$	236	$	236
2.00% to 3.99%	—		441		49		132		622
Greater than 3.99%	1,077		—		—		—		1,077
Total	$	1,077	$	441	$	49	$	368	$	1,935
ULSG (3):
Less than 2.00%	$	—	$	—	$	—	$	—	$	—
2.00% to 3.99%	1,134		1,485		1,663		254		4,536
Greater than 3.99%	506		—		—		—		506
Total	$	1,640	$	1,485	$	1,663	$	254	$	5,042

_______________

(1)Includes policyholder account balances for fixed rate annuities and the fixed account portion of variable annuities.

(2)Includes policyholder account balances for retained asset accounts, universal life policies and the fixed account portion of universal variable life insurance policies.

(3)Amounts are gross of policy loans.