Liability For Future Policy Benefits (Tables)

9 Months Ended

Sep. 30, 2023

Insurance [Abstract]

Liability for Future Policy Benefit

The balances of and changes in Benefit Reserves as of and for the periods indicated consist of the three tables presented below: Present Value of Expected Net Premiums rollforward, Present Value of Expected Future Policy Benefits rollforward, and Net Liability for Future Policy Benefits.

	Nine Months Ended September 30, 2023
	Present Value of Expected Net Premiums
	Term Life		Fixed Annuities		Total
	(in thousands)
Balance, beginning of period	$	10,911,794	$	0	$	10,911,794
Effect of cumulative changes in discount rate assumptions, beginning of period	554,896		0		554,896
Balance at original discount rate, beginning of period	11,466,690		0		11,466,690
Effect of assumption update	(790)		0		(790)
Effect of actual variances from expected experience and other activity	(144,504)		(1,257)		(145,761)
Adjusted balance, beginning of period	11,321,396		(1,257)		11,320,139
Issuances	512,379		28,889		541,268
Net premiums / considerations collected	(1,008,159)		(27,632)		(1,035,791)
Interest accrual	391,662		0		391,662
Balance at original discount rate, end of period	11,217,278		0		11,217,278
Effect of cumulative changes in discount rate assumptions, end of period	(939,494)		0		(939,494)
Balance, end of period	$	10,277,784	$	0	$	10,277,784

	Nine Months Ended September 30, 2023
	Present Value of Expected Future Policy Benefits
	Term Life		Fixed Annuities		Total
	(in thousands)
Balance, beginning of period	$	17,835,251	$	204,727	$	18,039,978
Effect of cumulative changes in discount rate assumptions, beginning of period	962,034		24,876		986,910
Balance at original discount rate, beginning of period	18,797,285		229,603		19,026,888
Effect of assumption update	(1,044)		0		(1,044)
Effect of actual variances from expected experience and other activity	(191,864)		6,793		(185,071)
Adjusted balance, beginning of period	18,604,377		236,396		18,840,773
Issuances	512,379		28,889		541,268
Interest accrual	670,905		6,300		677,205
Benefit payments	(1,019,151)		(25,504)		(1,044,655)
Other adjustments	2,845		(84)		2,761
Balance at original discount rate, end of period	18,771,355		245,997		19,017,352
Effect of cumulative changes in discount rate assumptions, end of period	(1,767,981)		(34,327)		(1,802,308)
Balance, end of period	$	17,003,374	$	211,670	$	17,215,044
Other, end of period					1,838
Total balance, end of period					$	17,216,882

	Nine Months Ended September 30, 2023
	Net Liability for Future Policy Benefits (Benefit Reserves)
	Term Life		Fixed Annuities		Total
	(in thousands)
Balance, end of period, pre-flooring	$	6,725,590	$	211,670	$	6,937,260
Flooring impact, end of period	1,773		0		1,773
Balance, end of period, post-flooring	6,727,363		211,670		6,939,033
Less: Reinsurance recoverable	6,241,505		17,097		6,258,602
Balance after reinsurance recoverable, end of period, post-flooring	$	485,858	$	194,573	$	680,431

	Nine Months Ended September 30, 2022
	Present Value of Expected Net Premiums
	Term Life		Fixed Annuities		Total
	(in thousands)
Balance, beginning of period	$	12,485,056	$	0	$	12,485,056
Effect of cumulative changes in discount rate assumptions, beginning of period	(1,826,120)		0		(1,826,120)
Balance at original discount rate, beginning of period	10,658,936		0		10,658,936
Effect of assumption update	1,295,294		0		1,295,294
Effect of actual variances from expected experience and other activity	(86,611)		(1,032)		(87,643)
Adjusted balance, beginning of period	11,867,619		(1,032)		11,866,587
Issuances	317,058		23,787		340,845
Net premiums / considerations collected	(1,000,325)		(22,755)		(1,023,080)
Interest accrual	392,917		0		392,917
Balance at original discount rate, end of period	11,577,269		0		11,577,269
Effect of cumulative changes in discount rate assumptions, end of period	(751,597)		0		(751,597)
Balance, end of period	$	10,825,672	$	0	$	10,825,672

	Nine Months Ended September 30, 2022
	Present Value of Expected Future Policy Benefits
	Term Life		Fixed Annuities		Total
	(in thousands)
Balance, beginning of period	$	20,937,097	$	237,065	$	21,174,162
Effect of cumulative changes in discount rate assumptions, beginning of period	(3,607,275)		(16,704)		(3,623,979)
Balance at original discount rate, beginning of period	17,329,822		220,361		17,550,183
Effect of assumption update	1,756,995		0		1,756,995
Effect of actual variances from expected experience and other activity	(171,967)		(1,489)		(173,456)
Adjusted balance, beginning of period	18,914,850		218,872		19,133,722
Issuances	317,058		23,787		340,845
Interest accrual	664,008		5,798		669,806
Benefit payments	(1,046,082)		(20,263)		(1,066,345)
Other adjustments	3,692		(285)		3,407
Balance at original discount rate, end of period	18,853,526		227,909		19,081,435
Effect of cumulative changes in discount rate assumptions, end of period	(1,370,645)		(28,806)		(1,399,451)
Balance, end of period	$	17,482,881	$	199,103	$	17,681,984
Other, end of period					2,186
Total balance, end of period					$	17,684,170

	Nine Months Ended September 30, 2022
	Net Liability for Future Policy Benefits (Benefit Reserves)
	Term Life		Fixed Annuities		Total
	(in thousands)
Balance, end of period, post-flooring	$	6,657,281	$	199,103	$	6,856,384
Less: Reinsurance recoverable	6,293,473		16,408		6,309,881
Balance after reinsurance recoverable, end of period, post-flooring	$	363,808	$	182,695	$	546,503

The following tables provide supplemental information related to the balances of and changes in Benefit Reserves included in the disaggregated tables above, on a gross (direct and assumed) basis, as of and for the periods indicated:

	Nine Months Ended September 30, 2023
	Term Life			Fixed Annuities
	($ in thousands)
Undiscounted expected future gross premiums	$	21,914,391		$	0
Discounted expected future gross premiums (at original discount rate)	$	15,083,578		$	0
Discounted expected future gross premiums (at current discount rate)	$	13,840,343		$	0
Undiscounted expected future benefits and expenses	$	29,147,479		$	328,212
Interest accrual	$	279,242		$	6,300
Gross premiums	$	1,351,460		$	32,677
Weighted-average duration of the liability in years (at original discount rate)	10			7
Weighted-average duration of the liability in years (at current discount rate)	9			6
Weighted-average interest rate (at original discount rate)	5.18		%	3.62		%
Weighted-average interest rate (at current discount rate)	6.02		%	5.95		%

	Nine Months Ended September 30, 2022
	Term Life			Fixed Annuities
	($ in thousands)
Undiscounted expected future gross premiums	$	22,344,548		$	0
Discounted expected future gross premiums (at original discount rate)	$	15,403,622		$	0
Discounted expected future gross premiums (at current discount rate)	$	14,404,899		$	0
Undiscounted expected future benefits and expenses	$	29,477,887		$	303,385
Interest accrual	$	271,091		$	5,798
Gross premiums	$	1,379,044		$	25,058
Weighted-average duration of the liability in years (at original discount rate)	11			7
Weighted-average duration of the liability in years (at current discount rate)	10			6
Weighted-average interest rate (at original discount rate)	5.26		%	3.55		%
Weighted-average interest rate (at current discount rate)	5.67		%	5.58		%

The balances of and changes in Deferred Profit Liability as of and for the periods indicated are as follows:

	Nine Months Ended September 30,
	2023		2022
	Fixed Annuities
	(in thousands)
Balance, beginning of period	$	18,193	$	15,765
Effect of actual variances from expected experience and other activity	(6,924)		834
Adjusted balance, beginning of period	11,269		16,599
Profits deferred	4,834		2,173
Interest accrual	423		444
Amortization	(1,647)		(1,424)
Other adjustments	(11)		(25)
Balance, end of period	14,868		17,767
Less: Reinsurance recoverable	1,435		1,710
Balance after reinsurance recoverable	$	13,433	$	16,057

The following table provides supplemental information related to the balances of and changes in Deferred Profit Liability, included in the disaggregated table above, on a gross (direct and assumed) basis, as of and for the period indicated:

	Nine Months Ended September 30,
	2023		2022
	Fixed Annuities
	(in thousands)
Revenue(1)	$	3,325	$	(2,002)
Interest accrual	423		444

(1) Represents the gross premiums collected in changes in deferred profit liability.

The following table shows a rollforward of AIR balances for variable and universal life products for the periods indicated:

	Nine Months Ended September 30,
	2023		2022
	(in thousands)
Balance, including amounts in AOCI, beginning of period, post-flooring	$	12,664,445	$	11,660,527
Flooring impact and amounts in AOCI	1,269,237		(896,930)
Balance, excluding amounts in AOCI, beginning of period, pre-flooring	13,933,682		10,763,597
Effect of assumption update	22,910		2,197,592
Effect of actual variances from expected experience and other activity	(12,611)		(215,658)
Adjusted balance, beginning of period	13,943,981		12,745,531
Assessments collected(1)	828,657		738,061
Interest accrual	360,309		318,069
Benefits paid	(219,784)		(131,667)
Balance, excluding amounts in AOCI, end of period, pre-flooring	14,913,163		13,669,994
Flooring impact and amounts in AOCI	(1,714,686)		(1,576,731)
Balance, including amounts in AOCI, end of period, post-flooring	13,198,477		12,093,263
Less: Reinsurance recoverable	12,979,687		11,902,756
Balance after reinsurance recoverable, including amounts in AOCI, end of period	$	218,790	$	190,507

(1) Represents the portion of gross assessments required to fund the future policy benefits.

	Nine Months Ended September 30,
	2023			2022
	($ in thousands)
Interest accrual	$	360,309		$	318,069
Gross assessments	$	1,168,206		$	1,020,763
Weighted-average duration of the liability in years (at original discount rate)	22			23
Weighted-average interest rate (at original discount rate)	3.36		%	3.38		%

The following table presents the reconciliation of the ending balances from the above rollforwards, Benefit Reserves, Additional Insurance Reserves, and Deferred Profit Liability including other liabilities, gross of related reinsurance recoverables, to the total liability for Future Policy Benefits as reported on the Company's Unaudited Interim Consolidated Statements of Financial Position as of the periods indicated:

	Nine Months Ended September 30,
	2023		2022
	(in thousands)
Benefit reserves, end of period, post-flooring	$	6,939,033	$	6,856,384
Deferred profit liability, end of period, post-flooring	14,868		17,767
Additional insurance reserves, including amounts in AOCI, end of period, post-flooring	13,198,477		12,093,263
Subtotal of amounts disclosed above	20,152,378		18,967,414
Other Future policy benefits reserves(1)	1,104,756		1,036,278
Total Future policy benefits	$	21,257,134	$	20,003,692

(1)Represents balances for which disaggregated rollforward disclosures are not required, including unpaid claims and claims expenses, and incurred but not reported and in course of settlement claim liabilities.

The following tables present revenue and interest expense related to Benefit Reserves, Additional Insurance Reserves, and Deferred Profit Liability, as well as related revenue and interest expense not presented in the above supplemental tables, in the Company's Consolidated Statement of Operations for the periods indicated:

	Nine Months Ended September 30, 2023
	Revenues(1)
	Term Life		Variable/ Universal Life		Fixed Annuities		Total
	(in thousands)
Benefit reserves	$	1,351,460	$	0	$	32,677	$	1,384,137
Deferred profit liability	0		0		3,325		3,325
Additional insurance reserves	0		1,168,206		0		1,168,206
Total	$	1,351,460	$	1,168,206	$	36,002	$	2,555,668

	Nine Months Ended September 30, 2022
	Revenues(1)
	Term Life		Variable/ Universal Life		Fixed Annuities		Total
	(in thousands)
Benefit reserves	$	1,379,044	$	0	$	25,058	$	1,404,102
Deferred profit liability	0		0		(2,002)		(2,002)
Additional insurance reserves	0		1,020,763		0		1,020,763
Total	$	1,379,044	$	1,020,763	$	23,056	$	2,422,863

(1)Represents "Gross premiums" for benefit reserves; "Revenue" for deferred profit liability and "Gross assessments" for additional insurance reserves.

	Nine Months Ended September 30, 2023
	Interest Expense
	Term Life		Variable/ Universal Life		Fixed Annuities		Total
	(in thousands)
Benefit reserves	$	279,242	$	0	$	6,300	$	285,542
Deferred profit liability	0		0		423		423
Additional insurance reserves	0		360,309		0		360,309
Total	$	279,242	$	360,309	$	6,723	$	646,274

	Nine Months Ended September 30, 2022
	Interest Expense
	Term Life		Variable/ Universal Life		Fixed Annuities		Total
	(in thousands)
Benefit reserves	$	271,091	$	0	$	5,798	$	276,889
Deferred profit liability	0		0		444		444
Additional insurance reserves	0		318,069		0		318,069
Total	$	271,091	$	318,069	$	6,242	$	595,402