Insurance Liabilities (Tables)

3 Months Ended

Mar. 31, 2025

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,
	2025									2024
	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	$	2,758		$	—		$	—		$	2,899		$	—		$	—
Beginning balance at original discount rate	3,110			—			—			3,162			—			—
Effect of model refinements	—			—			—			1			—			—

Effect of actual variances from expected experience	1			—			—			(7)			—			—
Adjusted beginning of period balance	3,111			—			—			3,156			—			—
Issuances	5			—			—			24			—			—
Interest accrual	28			—			—			28			—			—
Net premiums collected	(82)			—			—			(91)			—			—
Ending balance at original discount rate	3,062			—			—			3,117			—			—
Effect of changes in discount rate assumptions	(320)			—			—			(309)			—			—
Balance, end of period	$	2,742		$	—		$	—		$	2,808		$	—		$	—
Present value of expected future policy benefits:
Balance, beginning of period	$	5,245		$	3,728		$	6,118		$	5,385		$	3,719		$	6,697
Beginning balance at original discount rate	5,908			4,121			6,876			5,905			3,993			7,085
Effect of model refinements	1			—			—			1			—			—

Effect of actual variances from expected experience	9			(21)			(19)			(5)			4			(2)
Adjusted beginning of period balance	5,918			4,100			6,857			5,901			3,997			7,083
Issuances	6			79			—			25			98			—
Interest accrual	53			40			74			54			38			77
Benefit payments	(150)			(100)			(133)			(146)			(103)			(147)
Ending balance at original discount rate	5,827			4,119			6,798			5,834			4,030			7,013
Effect of changes in discount rate assumptions	(592)			(346)			(689)			(621)			(347)			(576)
Balance, end of period	$	5,235		$	3,773		$	6,109		$	5,213		$	3,683		$	6,437
Net liability for future policy benefits, end of period	$	2,493		$	3,773		$	6,109		$	2,405		$	3,683		$	6,437
Less: Reinsurance recoverable, end of period	16			31			59			23			31			62
Net liability for future policy benefits, after reinsurance recoverable	$	2,477		$	3,742		$	6,050		$	2,382		$	3,652		$	6,375
Weighted-average duration of liability	7.5 years			7.9 years			11.5 years			8.8 years			8.2 years			11.6 years
Weighted-average interest accretion rate	3.91		%	4.06		%	4.46		%	3.91		%	4.00		%	4.46		%
Current discount rate	5.24		%	5.31		%	5.54		%	5.24		%	5.24		%	5.32		%
Gross premiums or assessments recognized during period	$	137		$	104		$	—		$	139		$	121		$	—
Expected future gross premiums, undiscounted	$	5,599		$	—		$	—		$	5,889		$	—		$	—
Expected future gross premiums, discounted	$	4,164		$	—		$	—		$	4,449		$	—		$	—
Expected future benefit payments, undiscounted	$	7,898		$	5,751		$	13,173		$	8,055		$	5,669		$	13,622
Expected future benefit payments, discounted	$	5,827		$	4,119		$	6,798		$	5,834		$	4,030		$	7,013

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


	Three Months Ended March 31,
	2025			2024
	(Dollars in millions)
Balance, beginning of period	$	8,986		$	7,607
Beginning balance before the effect of unrealized gains and losses	9,277			7,784

Effect of actual variances from expected experience	63			40
Adjusted beginning of period balance	9,340			7,824
Interest accrual	113			94
Net assessments collected	116			103
Benefit payments	(146)			(115)

Ending balance before the effect of unrealized gains and losses	9,423			7,906
Effect of unrealized gains and losses	(250)			(220)
Balance, end of period	9,173			7,686
Less: Reinsurance recoverable, end of period	1,551			1,447
Net additional liability, after reinsurance recoverable	$	7,622		$	6,239
Weighted-average duration of liability	6.6 years			6.7 years
Weighted-average interest accretion rate	4.95		%	4.93		%
Gross assessments recognized during period	$	257		$	254

A reconciliation of the net LFPBs for non-participating 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,
	2025		2024
	(In millions)
Liabilities reported in the preceding rollforward tables	$	21,548	$	20,211
Long-term care insurance (1)	5,191		5,375
ULSG liabilities, including liability for profits followed by losses	965		2,591
Participating whole life insurance (2)	2,987		2,875
Deferred profit liabilities	448		476
Other	303		342
Total liability for future policy benefits	$	31,442	$	31,870

_______________

(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, 2025 and 2024, and 39% and 40% of gross traditional life insurance premiums for the three months ended March 31, 2025 and 2024, 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, 2025
Balance, beginning of period	$	2,028		$	3,667		$	48,605		$	14,665		$	4,779		$	1,166
Premiums and deposits	65			14			1,984			105			157			—
Surrenders and withdrawals	(20)			(134)			(1,614)			(300)			(6)			—
Benefit payments	(13)			(23)			(86)			(95)			(14)			(2)
Net transfers from (to) separate account	3			28			—			—			—			(495)
Interest credited	19			23			192			141			39			6
Policy charges	(48)			(5)			(8)			—			(245)			(2)
Changes related to embedded derivatives	—			—			(1,177)			—			—			—

Balance, end of period	$	2,034		$	3,570		$	47,896		$	14,516		$	4,710		$	673
Weighted-average crediting rate (2)	0.94		%	0.64		%	0.48		%	0.97		%	0.82		%	0.65		%
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		%

_______________

(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,
	2025		2024
	(In millions)
Policyholder account balances reported in the preceding rollforward table	$	73,399	$	71,085
Funding agreements classified as investment contracts	10,116		11,245
Institutional group annuities	401		—
Other investment contract liabilities	883		964
Total policyholder account balances	$	84,799	$	83,294

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, 2025
Annuities (1):
Less than 2.00%	$	551	$	116	$	229	$	8,821	$	9,717
2.00% to 3.99%	6,690		490		589		333		8,102
Greater than 3.99%	769		—		—		—		769
Total	$	8,010	$	606	$	818	$	9,154	$	18,588
Life insurance (2) (3):
Less than 2.00%	$	—	$	—	$	—	$	341	$	341
2.00% to 3.99%	—		471		47		126		644
Greater than 3.99%	1,004		—		—		—		1,004
Total	$	1,004	$	471	$	47	$	467	$	1,989
ULSG (3):
Less than 2.00%	$	—	$	—	$	—	$	—	$	—
2.00% to 3.99%	1,031		1,366		1,584		235		4,216
Greater than 3.99%	478		—		—		—		478
Total	$	1,509	$	1,366	$	1,584	$	235	$	4,694
December 31, 2024
Annuities (1):
Less than 2.00%	$	516	$	112	$	230	$	8,749	$	9,607
2.00% to 3.99%	6,633		439		416		334		7,822
Greater than 3.99%	781		—		—		—		781
Total	$	7,930	$	551	$	646	$	9,083	$	18,210
Life insurance (2) (3):
Less than 2.00%	$	—	$	—	$	—	$	308	$	308
2.00% to 3.99%	—		471		47		128		646
Greater than 3.99%	1,020		—		—		—		1,020
Total	$	1,020	$	471	$	47	$	436	$	1,974
ULSG (3):
Less than 2.00%	$	—	$	—	$	—	$	—	$	—
2.00% to 3.99%	1,052		1,386		1,602		238		4,278
Greater than 3.99%	484		—		—		—		484
Total	$	1,536	$	1,386	$	1,602	$	238	$	4,762

_______________

(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.